Friday, October 17, 2014
Here's one for Wall Street Whitey: IWM's recent underperformance
Josh Brown and/or Barry Ritholtz (it's hard to tell the Happiness Twins apart) have been talking for a while about how the R2K has been grossly underperforming SPY all year, after small-cap's outperformance through the big 2013 markeet push, and how this was a harbinger of dooooom.
OK, so now I gotta respond with a sarcastic chart:
R2K has now corrected back to below where it was at the big pop of 2013. So Josh can stop talking about it now.
Oh and by the way, small cap is always supposed to outperform large cap when you're seeing economic growth, isn't it? I mean, the larger caps have a more defensive profile generally, don't they?