Russell 2000…Look For It To Start Turning Down

They say the Russell 2000 leads the way down and leads the way up. 

The Russell 2000 lead the way down last quarter dropping almost 30% from its Aug 31 high vs the S&P 500 dropping almost 15% over the same period.

What a difference a new quarter and year make. The Russell 2000 has led the broader market, rising nearly 8% vs the S&P 500’s nearly 5% rise.  However, the Russell 2000 leading the broader markets might be short lived. 

Usually towards the end of the business cycle, rising interest rates hurt smaller companies the most because they have a higher debt

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