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Small-caps are outperforming during the vaccine-induced rally as investors ditch technology heroes for cyclical stocks whose outperformance hinges on a strengthening economy.
The small-cap benchmark, the Russell 2000, is up more than 5% this week following Pfizer's news that it had developed a Covid-19 vaccine with a better than 90% success rate in tests. Investors digested the news by rotating out of growth stocks and into those most beaten down by the pandemic.
However, Wall Street small-cap market guru Steven DeSanctis said the group of cyclicals has been silently grinding higher since the start of the pandemic, with many signs pointing to a strong 2021.