The Globe and Mail reports in its Monday edition that investors should not let the recent rally fool them. A Bloomberg dispatch to The Globe says that U.S. small-cap stocks are still digging out from their wintertime bear-market sell-off, and anyone expecting relief this month stands to be disappointed. Sure, the Russell 2000 index has led the post-February bounce in U.S. equities, surging 21 per cent compared with 15 per cent for the Russell 1000. That rally is less impressive because small caps plummeted almost twice as much as their large-cap counterparts from 2015 peak levels. While the market quickly shook off Brexit and small caps led the way, strategists see pitfalls that warrant caution. "The market action post the U.K. referendum doesn't change the story that small caps are a higher-beta, lower-quality risk asset," said strategist Dan Suzuki at Bank of America Corp. "Over the long term, say the next 10 years, small caps can do okay relative to the large caps, but just for the remainder of this cycle, small caps are not as good of a risk-reward. The U.K. referendum was just the first of a bunch of different catalysts that we expect over the next four to five months."