|
|||
 |
Long Term Perspective
Small cap stocks have historically shown greater returns than large cap stocks. This is a new index to the S&P family, but the Russell 2000 has a longer history and also measures the small cap sector. In contrast to the S&P 500, the small cap index posted gains in 2000 and 2001, but succumbed to the bear market in 2002. Short Term Perspective
Just like the S&P 500 and the Midcap, the Small Cap index includes industrials, utilities, financials and transportation. A larger portion of the companies in this index is from the Nasdaq (41 percent) than for the other two index measures. The financial crises hit the small cap sector in 1998. Moderate gains were recorded in subsequent years including 2001, but not 2002.
The Small Cap index surged 8.6 percent in October after a brief one month dip in September. The monthly gains in this index are much larger than for the large cap and mid cap stocks.
 |
|
|
