Market analysts are divided on the future of small-cap and large-cap stocks, suggesting both potential for growth and overvaluation concerns. Vanguard's Greg Davis notes a rally in small-cap stocks, driven by relatively cheap valuations compared to large caps, with the Russell 2000 up nearly 10% in July. Conversely, some experts caution that a significant portion of small and mid-cap stocks are trading above reasonable valuations, urging investors to avoid these overvalued areas. Oppenheimer analysts suggest that current market weaknesses present buying opportunities, particularly in small caps, indicating a shift towards smaller capitalized equities. Additionally, a growing interest in stocks like Bank of America highlights a broader trend among superinvestors favoring certain large caps amidst market fluctuations. Overall, while there are signs of recovery and potential in small caps, careful valuation assessments remain crucial.