Their strategists recommend small and undervalued companies as short-term investments


As U.S. stocks rally, Citigroup and JPMorgan like laggards


The small- and mid-cap-tracking Russell 2000 index has <a href="https://finance.yahoo.com/quote/%5ERUT/?utm_source=in_materials">fallen</a> nearly 5% since November 6, when <strong>Donald Trump</strong> won the U.S. presidential election. By comparison, the large-cap S&amp;P 500 index gained 1% in the same period. While Trump’s policies are generally seen as helpful for small businesses, the prospect of higher interest rates for longer is unsettling investors, Reuters <a href="https://www.reuters.com/markets/us/wall-st-week-ahead-small-caps-lose-trump-bump-rising-rates-sap-strength-2025-01-17/?utm_source=in_materials">reports</a>.

Russell 2000 gives up gains from Trump election

In the month following the U.S. presidential election, the S&amp;P SmallCap 600 index <a href="https://finance.yahoo.com/quote/%5ESP600/?utm_source=in_materials">gained</a> 6%. Among the biggest winners were regional bank Dime and car-rental company Hertz, as <a href="https://www.wsj.com/finance/investing/for-small-cap-stocks-look-past-the-trump-trade-cf869302?utm_source=in_materials">reported</a> by the .