VTWO - Broader Market Participation Continues

2024-07-29 11:00:00 ET

Summary

• One common theme in some earlier blog posts this year has been commentary around a market that is seeing broader participation.
• The Russell 2000 small company stock index's market cap as a percentage of the Russell 3000 total market index's market cap is a near-record low, equaling 4.9%.
• With the focus on rotation, one area ripe for potential selling is within the Magnificent 7 stocks.

One common theme in some earlier blog posts this year has been commentary around a market that is seeing broader participation. What is meant by this is the fact more stocks and asset classes are participating in the market's move higher, especially participation outside of the mega cap stocks. On January 1st, I wrote an article, Time For Small Caps? , and in the article it was noted how small company stocks have underperformed their large cap counterparts since 2013. As a firm, we eliminated small company stock exposure in client accounts in 2013 and just moved back into the asset class in the third quarter last year and added to the asset class earlier this year....

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