Smaller Looms Larger as Second-Half Gauge for U.S. Stocks
Demand for shares of smaller companies may provide U.S. stocks with a tailwind through year-end, says Bruce Bittles, Robert W. Baird & Co.’s chief investment strategist. He cited the ratio between the S&P 500 Equal Weighted Index and the S&P 500, which weighs each company based on market value, in a June 24 report. “The contrast between 2015 and 2016 is significant and suggests the S&P 500 enters the second half of 2016 with strong underlying support,” he wrote.