S&P 500 vs Russell 2000: Small caps should outperform, Goldman Sachs says

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S&P 500 vs Russell 2000: Small caps should outperform, Goldman Sachs says
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The Russell 2000 should beat the S&P 500, if it can overcome these 3 headwinds, Goldman Sachs says

over the coming year, but it all depends on its ability to weather certain headwinds, a Goldman Sachs report said on Wednesday.

That would mark a rare role reversal as the S&P 500 typically outperforms the Russell 2000. However, the small-cap index's potentially bigger returns also carry more risk, the note said.The index is more vulnerable to monetary tightening as listed companies tend to be more burdened by debt when compared to those of the S&P 500.

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