One of the commonly held beliefs of investing is that small cap equities are the best performing asset class in periods immediately following an economic recession. This has been shown to be reasonably true in the U.S. going as far back as the late 1920s. As the country struggles through the current economic recession that started in December 2007, investors are questioning whether small cap stocks are capable of leading the next recovery or if market fundamentals have changed such that large cap stocks are poised to perform best. This paper examines U.S. equities (without regard to style) in an attempt to answer that question by investigating the reasons why small caps have led past recoveries, the possible indicators of impending small cap leadership, and the factors surrounding the current economic environment that may impede small cap leadership coming out of this recession.