U.S. Small Caps Fall Far Enough Behind to Signal Rebound
“Now is the time” to invest in smaller U.S. companies, according to David Halloran, director of portfolio strategies at Greenwood Capital Associates LLC. He cited a gap between the 12-month performance of the Russell 2000 and S&P 500 indexes in an email Tuesday. The Russell 2000 trailed by 10.4 percentage points as of Tuesday, according to data compiled by Bloomberg. Gaps of about nine points or more have typically been followed by small-cap stock rebounds since 2000, Halloran wrote. Greenwood began adding small caps to multi-asset portfolios about two weeks ago and is looking to buy more, he wrote.