Large Caps Now Dominating, Small and Mid Caps a Distant Second

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October 23, 2008

Perhaps we should take it at face value when we see large caps well up for the last two weeks, while small and mid caps are well in the red. A little disparity is bound to happen, but this is more than a little. Large cap growth is up 1.2% for the last two weeks, and was up 1.54% today. Large cap value is 0.8% for the last two weeks and was up 0.96% today. Had it not been for large caps, things would have been significantly worse.

The next-best two week return comes from mid-cap growth, but only by virtue of being a mere 5.6% in the hole. For the day, mid-cap value was the closest competition with large caps, but it was down 2.1%.

Company Name	%Chg: 1 day	1-Week Pct Chg	%Chg: 5 day	2-Week Pct Chg
Large Cap Growth Index	1.54%	-3.36%	-3.75%	1.18%
Large Cap Value Index	0.96%	-3.54%	-4.38%	0.78%
Mid Cap 400 Value Index	-2.09%	-6.78%	-7.38%	-6.51%
Small Cap 600 Value Index	-2.56%	-7.52%	-9.15%	-7.22%
Small Cap 600 Growth Index	-2.83%	-7.19%	-8.43%	-7.49%
Mid Cap 400 Growth Index	-3.17%	-7.16%	-7.25%	-5.61%

In short, large caps look like they’re your best shot at taking advantage if any upside moves right now. Small and mid caps look like nothing but liabilities.

As always, the best ways to plat style and cap trends is with ETFs (exchange-traded funds). The iShares S&P 500 Value ETF (IVE) and the iShares S&P 500 Growth ETF (IVW) are obviously of interest here….if you think the market’s at a bottom. The small and mid cap ETFs are lagging badly enough that we’re not interestes at all right now….even if we are at a bottom.

We’d normally look at a chart as well, but what’s the point - this isn’t about trends or reversals right now. It’s about out-guessing the market’s next bout wtih volatility.

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