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Tuesday, November 29, 2011
2011 Large Cap vs. Small Cap Performance
Today is a unique day in that while the S&P is up 40 bps, the Russell 2000 is actually negative by 20 bps. Large cap's outperformance for the day is making up ground from yesterday when the Russell outperformed by a larger margin. YTD though, the smaller stocks that make up the Russell 2000 have badly lagged the S&P.
Many think of the Russell as a higher beta play on stocks, so maybe it's not too surprising that it's lagging. Still, after a 10 year period of outperformance, the Russell trades at 19x forward earnings while the S&P trades at 11x. Certainly this has some influence.