New Delhi, Jan. 31 -- Smallcap stocks are gasping for air. A mix of economic uncertainties, earnings pressures, and relentless FII outflows has sent them into a tailspin, wiping out recent gains.

With no clear bottom in sight, investors are left wondering: Is this just a correction-or the start of something bigger?

History might have some answers.

The table above captures previous peaks of the BSE Smallcap Index, the extent of its declines, and the time taken for the index to recover to its previous highs.

In the last two decades, the recoveries have taken 3 to 4 years (January 2018 correction) and even 10 years (2008 correction). While this may be unsettling, my long-term view on smallcaps remains positive.

Smallcaps are the cogs an...