Wednesday, October 16, 2019

Why small caps are lagging (and what it means)

Mid-week market update: One of the investing puzzles that has appeared in the last few months is the mystery of small cap underperformings. The USD Index has been strong over the last three months, which should create an earnings headwind for large cap multi-nationals with foreign operations. Instead, the relative performance of megacaps have been flat to up over this period, while mid and small cap stocks have lagged.

I unravel performance at a sector level, and discovered some unexpected insights about possible market direction.

The full post can be found here.

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