Long Term Perspective

 

 

The Russell 2000 rose 3.5 percent in 2014 after surging 37.0 percent in 2013.  The 10-year average posted at 8.3 percent in 2013, down from 9.6 percent in 2013.  The Russell 2000 is a benchmark index for the small capitalization sector. It has a longer history than the S&P Small Cap Index and also has a wider base (2000 stocks versus 600 for the S&P).

 

Short Term Perspective

 

 

Small cap stocks seem to get hit more dramatically than large cap stocks in times of uncertainty but they also tend to rebound more sharply in economic recovery. This index gets revised each year in July when stocks no longer fitting the "small-cap" criterion are removed from the index.

 

On the year, the Russell was up 10.6 percent in July after increasing less than half that in June. June added 5.1 percent from June 2014.

 

 

The Russell 2000 retreated 1.2 percent in July on the month after gaining 0.6 percent in June. The index has declined three months (January, April and July) so far in 2015.