| In April 2020, historical data told us that it was an incredible time to be buyers in the small cap sector. (See the case I made here.) At that time, the five-year annualized return from the Russell 2000 was a negative 0.2%. That was an incredibly rare situation. In the 40-year history of the Russell 2000 Index of small cap stocks, it had ended a month with a negative five-year annualized return only 21 times. More importantly, the historical data told us what was about to happen next... From those 21 month ends, the future reward from owning small cap stocks was incredible. On average, the one-year return was 40.8%... The three-year return was 22.1%... And the five-year return was 18.3%. In the months and years that followed that negative return in April 2020, small caps performed even better than expected. More than a year and a half after I published that article on April 14, the small cap sector - represented by the iShares Core S&P Small-Cap ETF (NYSE: IJR) - had doubled! The iShares Core S&P Small-Cap ETF is not just one company but rather a widely diversified index that consists of 600 different stocks from all of America's industries. Opportunity knocked, and anyone who answered was extremely well rewarded. Now we're in a similar situation. And this indicator is "flashing green" again. Click the button below to reveal The Value Meter's rating for the small cap exchange-traded fund (ETF). | 
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