JOET - Growing Divergences In Small Vs. Large Caps
2024-03-08 04:50:00 ET
Summary
- From 2009 to 2021, the large caps in the S&P 500 and the small caps in the Russell 2000 moved more or less in lock-step.
- We are seeing a similar divergence in U.S. labor market data as well with a huge gap developing between two different surveys conducted by the Bureau of Labor Statistics.
- The good news for small firms is that if and when the Fed begins to cut rates, their stocks might outperform the big guys in the S&P.
Originally posted on March 05, 2024
By Erik Norland
At A Glance
- From 2009 to 2021, the large caps in the S&P 500 and the small caps in the Russell 2000 moved more or less in lock-step.
- The Bureau of Labor Statistics establishment survey shows over half a million jobs were created over the course of December and January.