Looking at the chart of the Russell 3000, I find that things are making a lot of sense right now. The economy is not as strong as many of the talking heads are trying to preach to us.
If what they were saying about the economy were true, then the Russell 3000 wouldn’t be trading at the lower quadrant it has been for the better part of the past 12 months.
The large caps, on the other hand, are up about 14% year to date while the small caps are down about 1%.
This brings about the importance of asset allocation. Is it possible for large caps to catch down to small caps?
This post originally appeared at Investors Alley.