2014 was a tough year for small-cap stocks, with the Russell 2000 index rising just 3.5%, which is not quite as impressive as the broad S&P 500’s 11% gain. So far in 2015 the Russell is only up 1.7%, but so is the S&P 500, leaving plenty of questions over what the rest of the year looks like in the small-cap space. Small-cap stock performance tends to act as an indicator for what’s to come in large-cap stocks. TheStreet’s Scott Gamm speaks with Steven DeSanctis, head of small-cap strategy at Bank of America Merrill Lynch on whether a comeback is brewing in the small-cap space in 2015, along with what sectors investors should be stepping into and avoiding.
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