The Small-Cap Correction

Since early March, the Russell 2000 is down nearly 10%, while the big caps have been doing just fine.

Michael Batnick adds some context:

This is small caps’ 36th peak-to-trough decline of at least 10% since 2000, with an average decline of 17.1%. Of the first thirty-five corrections, every one of them were accompanied by large-caps also falling, until now (an average decline of 12.8%). The thing that has people scratching their heads is why large-caps have been blessed with impunity while small-caps have begun to roll over. The Russell 2000 is 10% off the recent highs and the S&P 500 up 0.12% over the same period.

Posted by Eddy Elfenbein on May 12th, 2014 at 11:20 am

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