Small Caps - Continue to Position

As I have been pontificating for some time, large cap growth is not the place to be.  I have been a big proponent of mid-caps with a keen eye on small caps.  Just a snapshot of what we have seen generally across the capitalization spaces:

Having a focus on growth (instead of value, which to me does not make sense at this juncture) we see the following:

Over the last three months, small-caps have outperformed mid-caps by 200bps.  Yeah, when markets are choppy, small-caps will have more volatility, but if you are invested, continue to shift into small-caps.

Now this probably isn't news to many folks, but I feel the need to get it out there.

Interesting trade idea though might be a growth/value arb.  Long IWO, short IWN.

Market Cap Update

Equity market cap update:

Mid-caps continue to outperform, small-caps passing large-caps, so I am maintaining my mid-cap position with a little small-cap added for good measure within my passive allocation.  As I posted on Tuesday, FEZ would be a good play on the bailout.  Outperforming SPY by 200bps last two days.  Still a little left to go - watch for an actual announcement and pay attention to the roll of the ECB.