BofA: Small Caps Stand To Benefit More Under Trump

Small caps have routinely outperformed large caps since 1926 – delivering 11.4% annual returns versus 9.5% for the larger stocks. They win handily on a number of other criteria too. Yet they are not always on the horizon of investors because of obviously higher risks. Bank of America Merrill Lynch believes the time might be ripe to look more favorably at small cap stocks again. A key reason: Small caps will stand to benefit far more than large caps under policies likely in the Trump presidency. Lower foreign exposure (21% vs 31% for large caps), a likely cut in corporate…