The Value Case for Small-Cap Stocks in 2026

Lucas and Luna make the case that small-cap value stocks are the most compelling opportunity in today's market. With the Russell 2000 up 3.4% in the past five days while mega-caps lag, they drill into why active managers are rotating down the market-cap ladder. Lucas walks through the historical valuation gap between large and small caps, the impact of a flat Fed funds rate near 3.6%, and the earnings cycle that typically rewards smaller companies. He highlights one underfollowed sector — aerospace suppliers — that screens cheap on price-to-book. Luna pushes back on liquidity risk and index concentration, and Lucas concedes the point before making the cyclical case. The episode closes with a practical framework for listeners who want to build a small-cap allocation without overdosing on risk. #SmallCapValue #Russell2000 #ValueInvesting #LucasAndLuna #FexingoBusiness #BusinessPodcast #Finance #Investing #StockMarket #ActiveManagement #MarketCycles #FedPolicy #InterestRates #Aerospace #PriceToBook #PortfolioConstruction #Midcaps #EarningsCycle Keep every episode free: buymeacoffee.com/fexingo