Thursday, December 1, 2016

Huge Small Stock Rally in November

The S&P small stock index surged 12.55 percent in the month of November, far and away the strongest performing sector of the stock market.  Why the huge run in November?  The results of the election. 

Finally, with the regulatory shackles hopefully being loosened, the spirit of American capitalism can breathe again.  Small stocks are the main beneficiaries.  Note that large growth stocks gained a mere 1.22 percent.  Large companies benefit from stifling regulation which is why their corporate leadership supported Hillary Clinton, almost unanimously.  But, small stocks, just like average Americans, benefit from economic freedom, which one suspects, may be on the way.

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