Why Russell 2000's Performance Is Crucial To Your Investment Strategy Amid Looming Recession Concerns
Portfolio Pulse from Benzinga Neuro
The Russell 2000 index, which represents the smaller two-thirds of the U.S. stock market, is lagging behind the large-cap Russell 1000 index by 13 percentage points this year, potentially signaling economic concerns. The dominance of tech giants like Microsoft, Amazon, Apple, Nvidia, Meta Platforms, and Alphabet could be contributing to the perceived weakness of the rest of the stock market. Despite the current lag, small-cap stocks have historically outperformed large-caps in the 12 months following each of the last 11 recessions.
October 11, 2023 | 7:33 am
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NEUTRAL IMPACT
Apple's dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Apple's strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Amazon's dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Amazon's strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Meta Platforms' dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Meta Platforms' strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Alphabet's dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Alphabet's strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Microsoft's dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Microsoft's strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Nvidia's dominance in the market could be contributing to the perceived weakness of the rest of the stock market.
While Nvidia's strong performance is beneficial for the company, it may be contributing to the underperformance of smaller stocks, potentially signaling economic concerns.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50