Small-cap growth stocks are highly likely to outperform the broader markets over the next three to five years. One key reason is that the Federal Reserve is widely expected to start cutting interest rates this year, which has historically been a significant tailwind for small-cap stock performance.

Additionally, small-cap stocks, on balance, are trading at steep discounts relative to their mid- and large-cap peers due to the Federal Reserve's aggressive rate hikes over the past two years. Lower interest rates also tend to boost investors' appetite for risk, a trend that often benefits smaller growth companies.

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Source Fool.com