Small caps crushed the competition today returning just north of 2% while midcaps fell just short of a 1% return and the S&P eeked out just north of 75bps (yeah, only, right).
Now the growth area of small and mids:
Mid growth lead small growth, so where did the small caps lead come from (yeah, seems somewhat obvious, but...)
Yep, all value driven. So, small value leads mid value today.
Is there a change going on?
Versus mid-cap value, I'd have to say small-caps are taking the lead.
But within small caps, value still trails growth.
But wait, what about mid-cap growth versus small-cap growth:
3mo period, mid-cap leads...
1 month period small-cap leads
5 day period mid-caps still lead.
Bottom line: I don't think a transition is in place from mid-growth to small-growth quite yet, but the relationship bears careful following as we may be seeing the beginning of the transition. I am still holding my mid-growth position until we get a better, less volatile sign of a transition.
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