SMALL VS LARGE CAPS Now trading 10% higher than in the below note from 2025, the small-to-large ratio remains in the lower end of its long-term cycle, offering a positive risk-reward for small caps. Indeed, at -3σ below its long-term trend, the ratio still suggests that small caps have an edge, as a return to the ratio's long-term trend would imply a 50% outperformance for them. Remember that we are speaking here about relative performance, meaning that this is return pick up you get on top of what large cap already offer. $IWM $IJS $VOO