It was a long year for owners of small-capitalization stocks, as we've discussed several times in this space. The Russell 2000, the most widely used index of small caps, collapsed in the third quarter, falling by 11 percent between early September and mid-October.
But since bottoming out two and a half months ago, small caps have rebounded strongly, gaining 16 percent in that time frame. At long last, the Russell 2000 set a new all-time high on December 26th, just four days before the end of the trading year.
And it's not done yet, reaching another record high yesterday. The Russell 2000 is now up 4.8 percent on the year - not bad for an asset class that many had left for dead two months ago.
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