MidCap vs. LargeCap. Technical & Fundamental Levels to Watch
Updated
The Russell 2000 trailed the S&P 500 significantly in 2023, gaining about 17% compared to a gain of about 24% for the large cap index. That underperformance has spilled over into 2024.
As of July 10, 2024 the Russell 2000 YTD is about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50 gain in Nasdaq Composite Index (IXIC).
By the way, that valuation measures make the small cap Russell 2000 index much more compelling when compared to the S&P 500.
Small caps relative to the S&P 500 on a price-to-book basis is back to where it was in 1999.
As of June 30, 2024 small caps price-to-book (P/B) ratio is 2.10, as it described on FTSE Russell 2000 Index Factsheet, while Total US Market (Russell 3000) P/B ratio is 4.42.
I'll be brief. Perhaps it will be the briefest brief over the past ten god years I'm here on TV.
[B]DON'T MISS IT, AS IT ONE PER LIFE OPPORTUNITY.[/B]
The main technical graph is ratio between RUT (Russell 2000 Index) and S&P500 Index, and it back to support that was never seen over the past 25 years, since March 1999.
What's happened with market at these times?
⭐ Nasdaq Composite Index doubled in price over the next 12 months (March, 1999 - March, 2000), than turned 4x down.
⭐ S&P500 Index printed +20 per cents (March, 1999 - March, 2000), than turned 2x down.
⭐ March 1999 was the absolute low and was a launch point of 12 years of outperformance for Small caps vs Large caps.
Will history repeat itself..? Who knows... But personally I believe - Yes, it can.
As of July 10, 2024 the Russell 2000 YTD is about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50 gain in Nasdaq Composite Index (IXIC).
By the way, that valuation measures make the small cap Russell 2000 index much more compelling when compared to the S&P 500.
Small caps relative to the S&P 500 on a price-to-book basis is back to where it was in 1999.
As of June 30, 2024 small caps price-to-book (P/B) ratio is 2.10, as it described on FTSE Russell 2000 Index Factsheet, while Total US Market (Russell 3000) P/B ratio is 4.42.
I'll be brief. Perhaps it will be the briefest brief over the past ten god years I'm here on TV.
[B]DON'T MISS IT, AS IT ONE PER LIFE OPPORTUNITY.[/B]
The main technical graph is ratio between RUT (Russell 2000 Index) and S&P500 Index, and it back to support that was never seen over the past 25 years, since March 1999.
What's happened with market at these times?
⭐ Nasdaq Composite Index doubled in price over the next 12 months (March, 1999 - March, 2000), than turned 4x down.
⭐ S&P500 Index printed +20 per cents (March, 1999 - March, 2000), than turned 2x down.
⭐ March 1999 was the absolute low and was a launch point of 12 years of outperformance for Small caps vs Large caps.
Will history repeat itself..? Who knows... But personally I believe - Yes, it can.
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July 16, 2024Small caps ants vs. Large cap mammoths
5-Day performance
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July 25, 2024👉 RUT/SPX ratio prints +9.65% in July, 2024 to this time. This is the biggest monthly gain since February, 2000.
👉 Just 4 Days left until end of month to cast in bronze this record gain.
👉 For newbies I remember that in March, 2000 major indices - SPX, DJI, NDX and IXIC hit the record high. Than all of them turned from 2x (SPX, DJI) to 4x (NDX, IXIC) down over the next 30 months.
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