The Russell 2000 index of small capitalization stocks has risen 36% since early October, according to The Wall Street Journal. The index is just 4.2% below the all time high of 865.29.
I find this particularly amazing, given that investors have pulled money from U.S. small cap mutual funds in 37 of the past 40 weeks, according to EPFR Global.
Intelligent investors understand the small cap stocks, both domestic and international, belong in a low cost, passive portfolio. They are long term investors and do not move tactically from asset class to asset class.
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