Small Caps. Big Losses!
We are about two months into the newfound trading range between 2300 and 2400. And as typical inside a range bound market, there was much more happening under the surface than appears in the modest moves of the large cap laden S&P 500.
For example, on Monday the S&P only shed -0.16%. Unfortunately those with a heavier dose of small caps found losses 7.3X more painful. In fact, the early gains enjoyed by small caps this year have been all but whittled away.
No, this is not a call to run away from small caps. Just a statement of the current situation where folks are clinging to safe (aka boring) stocks. Once the bull starts running to new heights again, then you can bet that small caps will lead the way......
Best,
BY H. Ritberg.