BOSTON ( TheStreet) -- Small-cap stocks as measured by the Russell 2000 fell into a bear market after dropping 25% in the past month. Some analysts, however, say investors have been too quick to dump shares of smaller companies.Small-cap stocks are usually the first group of equities to get crushed heading into a recession and typically are the first to recover on a rebound in economic growth. Investors flock to the safe havens of bonds and large-cap dividend stocks. With the Russell 2000's monthly decline outpacing the 17% plunge on the broader S&P 500, investors are now worried about the prospects of a second, more painful recession.
'Strong Rally' in Small-Caps May Emerge
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