A trader works on the floor of the New York Stock Exchange (NYSE) in New York.
Michael Nagle | Bloomberg | Getty Images
It might be time to buy into small-cap stocks even though they are lagging their large-cap counterparts, some strategists say.
The Russell 2000 — which tracks small-cap stocks — has dropped more than 9% over the past year. The S&P 500 — Wall Street’s preferred index for large-cap stocks — is up slightly over that time period.
This gap has brought small-cap valuations to their most attractive levels in years relative to large caps, presenting investors with a big buying opportunity for the long haul. Small caps also tend to outperform large caps when the Fed cuts…