The Small-Cap Resurgence

I touched on this in the last post but I wanted to add some more comments to the rebound in small-cap stocks. The Russell 2000 had led the S&P 500 for 15 years. Then, about a year ago, the cycle finally turned.

Or did it?

The Russell 2000 did indeed lag the broader market by a wide margin from March to October. But all that changed six months ago. Since then, small-caps have been on a tear. The Russell 2000 looks to make a new high today.

Here’s a look at the Russell 2000 divided by the S&P 500. The Russell 2000 is still well short of a relative performance high, but you can see how much it has closed the gap.

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Posted by on April 13th, 2015 at 3:22 pm


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