Sunday, December 26, 2010

Small Caps have Big 2010

Small cap stocks had a bad name mid-summer, when they were lagging.

But then, in the monster rally that took off from September, the small cap stocks took off and outperformed the SP500.

Of course, now come the 2011 predictions. Since small caps have outperformed recently, it's natural for folks to assume that they will again in 2011. After all, one of the reason contrarian analysis works at the end or beginning of moves is because everyone believes in the latest trend or fad.

On the other hand, when we look at history we know that small caps do outperform over the long term. Small caps also tend to rally early in economic recoveries.

Are we still early in this economic recovery?

Stuff to think about while watching the Dolphins and Jaguars throw their games away. Literally!
So, I don't like Christmas decorations once the holiday is over. And I had Christmas trees as my ipad wallpaper. I switched to a New Year's theme wallpaper, but there are other options:

Nah, not going to do it. But I won't criticize or judge those who do.

blog comments powered by Disqus