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.

Click to Enlarge
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.

No comments:

Post a Comment

For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.