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Small-Company Stocks Are in Line to Be Big Winners in 2022


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Illustration by Harry Campbell

Small stocks have big potential for the coming year.

They have already shaken off a seven-month funk and risen to record highs in November. Going forward, they have several ingredients in their favor. They are cheap in an expensive market, have attractive fundamentals, and can avoid several of the potential pitfalls facing large-caps in 2022.

Investors...