To put it mildly, small-caps have absolutely been crushing the broader market over the last four-and-a-half months. Too bad the mainstream financial media would rather spook investors with the 'what-ifs" of what is going wrong domestically and abroad.
Speaking of media coverage...
Remember back in September 2014 when the Internet and every major financial network was stumbling all over themselves to spell the end for small-caps because the Russell 2000 had just experienced the dreaded "Death Cross," a technical condition that occurs when the 50-day simple moving average crosses below the 200-day simple moving average?
I wrote an article at that time dissecting the truth behind the small-cap Death Cross.
And the verdict?
A whole bunch of hooey!
Investors who "short" the Russell 2000 during a Death Cross condition experience a dismal 25% winning percentage and an average return of a 0.97% loss.
Bottom line, the Death Cross is statistical a waste of time. It makes for good headlines - and a good way to lose money...