Investors haven't loved small-cap stocks this much in nearly 3 years. Here's why. – Yahoo Finance

Small-cap stocks have been gaining favor with investors recently, with their popularity reaching levels not seen in almost three years. This surge in interest can be attributed to several factors that have made these stocks more attractive to investors.

One reason for the increased attention on small-cap stocks is their potential for high returns. These stocks have historically outperformed their larger counterparts, offering investors the opportunity to see significant gains in their portfolios. Additionally, small-cap stocks are often seen as a way to diversify a portfolio and reduce risk, as they tend to have lower correlation with larger stocks.

Another factor driving the popularity of small-cap stocks is the current economic environment. With interest rates at historic lows and the Federal Reserve indicating that they will remain low for the foreseeable future, investors are looking for alternative ways to generate returns. Small-cap stocks are seen as a way to capitalize on potential growth opportunities in a low-interest-rate environment.

DailyBubble believes that small-cap stocks can offer investors the potential for strong returns and diversification benefits. However, it is important for investors to conduct thorough research and due diligence before investing in these stocks, as they can be more volatile and carry higher risk than larger stocks. Overall, the increased interest in small-cap stocks is a positive sign for the market and reflects growing confidence among investors.