Small Caps Are Crushing S&P 500 Stocks

Do you know this that the small caps are out performing the S&P 500 stocks. Talk about making a small fortune. The small-cap Russell 2000 hit a record high Thursday, and is seriously outperforming its large-cap cousin; the Russell is up 6.6 percent this year, versus a mere 3 percent rise for the S&P 500.

Small caps are all about growth. Expect most the small caps included in Russell 2000 to show outstanding growth as the FED continues to be dovish about the US economy and is showing reluctance increasing the interest rates. S&P 500 represents large cap stocks represented by big MNCs that are highly susceptible to interest rates and global political crisis. So things like what is happening in Greece will not get reflected in the small caps but it surely will get reflected in the large cap S&P 500 stocks. For example if Greece finally exits the EURO zone, expect a big turmoil for the large caps but nothing big is going to happen to the small caps.

About The Author


I have done masters from Harvard University. I am interested in day trading currencies, options and stocks.