A recent article in the WSJ talked about the fact that larger stocks are finally starting to take the lead in regards to performance when compared to small cap stocks.
“Megacaps,” with a stock market value of at least $50 billion, have picked up speed this year through July. For that period, the Russell 1000 Index, which includes the largest 1000 U.S. stocks, had gained 3.9% compared to a decline of 0.8% of the Russell 2000 Index.
While this maybe news to many investors, it shouldn’t be to you, if you follow our weekly StatSheet. There you can easily spot those orientations with are performing better than others. The article fails to point out that Mid-Cap Growth stocks purchased via ETFs have been near the top of the list and have outperformed most large caps.
My point is that making the latest StatSheet your weekly companion can pay big dividends when it comes to spotting trends. It does not mean, however, that you should constantly adjust your portfolio. What it does mean, is that you should adjust your holdings when an orientation is obviously slipping towards the bottom of the list.