US small-cap stocks are struggling: The relative small-cap to large-cap 10-year annualized return fell to -4% in October, the lowest since the late 1990s. Since the 1930s, there have been only a few periods when small caps underperformed so severely, including the 1950s, the early 1990s, and the late 1990s. This comes as the Russell 2000 index has risen +102% over the last 10 years, while the S&P 500 is up +220%. YTD, US small-cap stocks have risen just +6% and now reflect one of the worst-performing global regions, behind India's -5% decline. During the same period, South Korea, Spain, and Brazil recorded +58%, +48%, and +46% returns, respectively. Small caps have been left behind.