Chart of The Day - May 21, 2020

By: Chris Wenner in Charts 05/21/2020

Small caps continue to lag the S&P 500 on near every time frame.  Below is the ratio of the Russell 2000 Index vs. the S&P 500, charted, and on a 5-yr basis.  The ratio is currently in the 3rd percentile!  While small caps lagging the broader market by this much isn’t a good thing, historically, for the near-term trajectory of overall equity markets, I think taking a closer look in adding more exposure to this asset class now makes sense – especially vs. large caps.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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