Friday, November 21, 2014

Small Caps Coming to Life

The stock markets were up across the board yesterday, with the S&P 500 and Dow Jones industrial average both gaining 0.2 percent, and the Nasdaq up 0.6 percent. But the small-cap Russell 2000 index was the biggest gainer of all, rising by 1.1 percent.

The small-cap benchmark has struggled this year, but it's been showing signs of life lately. Since bottoming out a little over a month ago, on October 13, the Russell 2000 has added an impressive 10 percent. But given the troubles it had earlier in the year, it's still up less than 1 percent for 2014 as a whole.

Remember, the S&P 500 and Dow Jones, by definition, don't include any smaller stocks. For a full picture of the market, it's important to keep that Russell 2000 in mind. And it's good to see it coming around.

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