How to invest in 2021: Look past the Dow and buy small
CNN
The stock market is firmly back in bull mode. The S&P 500 is above 4,000 and near a record high, and the Dow is close to an all-time peak, too. But investors should keep smaller American companies in mind, even as they keep throwing money at blue chips like Caterpillar, Chevron and GM.
The Russell 2000 (RUT), an index that's home to many small cap US stocks, is up about 13% so far in 2021. That's better than the gains for the Dow, S&P 500 and the Mega Tech-dominated Nasdaq, which are up between 6% and 9% this year. Smaller stocks began to rally at the end of 2020 after getting hit hard during the onset of the Covid-19 pandemic in the United States a year ago and they've continued to surge ever since.
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