Let’s face it — small caps haven’t had it easy. While mega-cap tech stocks were busy driving the S&P 500 to all-time highs, smaller companies were stuck playing second fiddle. Since 2015, the Russell 2000 has delivered less than half the gains of its large-cap counterpart.
Back in 2022, the US central bank – the Federal Reserve – began raising interest rates quickly to fight inflation. Rates went from nearly 0% to over 5% in just over a year.
Interest in the Emerging Market (EM) region has increased in 2025. Their valuations remain low, but recent growth trends and external risks (like currency instability) have shifted the perspective. We analyse the fundamentals, examine current economic indicators, and determine if EMs represent genuine undervalued opportunities or potential pitfalls.
As we move through 2025, investors are starting to revisit a classic question: should portfolios lean toward large-cap stocks or give more weight to small-cap names? The spotlight on Apple and Microsoft continues but smaller firms are gaining attention for all the right reasons. Some of the fundamental signals now suggest that small-cap stocks could offer better value and growth potential.
The dollar’s dominance has been baked into every global market story for years, but lately it feels like the headline may be changing. After a long stretch of strength, driven by Fed rate hikes and flight-to-safety momentum, things are cooling off. So, the big question: is the dollar still overvalued, or are we just settling into a new norm?
