Money Flowing to small caps yesterday
Yesterday was a big ROTATION day on US equtities market with small-caps hugely outperforming large-caps. Indeed, small-cap Russell 2,000 gained 3%+ while the S&P 500 fell on the day. The only other day that happened was back on 10/10/2008... Investors probaby have these 2 charts in mind: 1) The HUGE underperformance of small caps vs large aps over the recent years; 2) History showing that Small caps outperform AFTER the first rate cut.
The lower than expected US CPI iunflation number for June acted as a trigger for the rotation with hedge funds being forced to cover their long large / short small par trades.
The lower than expected US CPI iunflation number for June acted as a trigger for the rotation with hedge funds being forced to cover their long large / short small par trades.
$iShares Core S&P 500 ETF (IVV.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Invesco NASDAQ 100 ETF (QQQM.US)$ $Vanguard S&P 500 ETF (VOO.US)$ $iShares Russell 2000 ETF (IWM.US)$ $Russell 2000 Index (.RUT.US)$ $Vanguard Russell 2000 ETF (VTWO.US)$ $Vanguard Russell 2000 Growth ETF (VTWG.US)$ $Vanguard Russell 2000 Value ETF (VTWV.US)$ $Direxion Daily Small Cap Bull 3X ETF (TNA.US)$
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