Since its recent closing low on 6/24, the S&P 500 is up 4.3%. While 4.3% in just over two weeks is nothing to sneeze at, the performance of small caps has been even more impressive. Since 6/24, the Russell 2000 is up fully 6.1%.
Over the last year, the Russell 2000 is up 25.4%, which is more than 400 basis points ahead of the S&P 500 over the same time period (21.3%). As shown in the chart below, the Russell 2000 has really been pulling ahead in the most recent two-week rally.
Small cap stocks are typically more domestically focused in their businesses than their large cap peers. With that in mind, the fact that they are increasingly outperforming large caps now indicates that investors are increasingly embracing the trade to stay focused on US companies with domestic exposure.
Reposted under CC license from BIG
