Best Stock Buys Right Now? Undervalued Small Cap Stocks

While the S&P 500 has fully recovered from last October’s selloff and has reached record highs, its smaller counterpart, the Russell 2000 small cap index, remains almost 9% below its zenith from last August.

Due to several factors, small caps may be poised to break out of their slump and recover lost ground. Here are the forces that might drive a turnaround in small-company shares:

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