Now Is the Time to Squirrel Away Low-Cap Stocks
The S&P 500 tracks the 500 largest U.S. public companies and is the most popular stock market index, with many investors using it to gauge how well the overall economy is performing. The Russell 2000 is an index that tracks the smallest 2,000 stocks in the Russell 3000 and is largely used to gauge how well small-cap stocks as a whole are performing.
Large-cap stocks, in general, are considered more stable because of their size, but an S&P 500 fund is considered one of the most stable and consistent investments in the stock market. Like any other stock, it has its fair share of lows (it's down over 17% YTD, as of July 26) and volatile swings, but in the long run, it's historically been as trustworthy of an investment as an investor could hope for.
While many investors tend to gravitate toward large-cap stocks during bear markets and periods of uncertainty, now may be the time to prepare for the future and rack up low-cap stocks.
Source Fool.com
