For all of 2019, investors seemed to have shunned mid- and . It appears in 2020, they could do an encore.
In fact, not much has changed since early-2018, when these stocks started their downtrend. The market continues to remain polarized towards the large- and mega-caps. So, while the has been scaling new highs, the performance gap has widened further in December 2019 between large- and small-caps. In 2019, large-cap companies cornered much of the inflows even as their valuations expanded. Contrastingly, the valuation of the mid- and small-cap indices has dropped significantly.
