Small-caps and mid-caps have experienced a substantial rally compared to large-caps. However, the surges in the small-cap and mid-cap segments have resulted in frothy valuations, as indicated by a price-to-book ratio significantly higher than the long-term average. In contrast, large-caps appear more reasonably priced and offer a better risk/reward ratio than mid and small-caps.

For a more detailed perspective, please refer to Trends & Tides on Equity Strategy.