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A junior natural resource company focused on the acquisition and exploration of precious and base metal properties in Canada and United States.
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Strike Graphite Corp. (TSXV:SRK) Acquires Wagon Graphite Project in Quebec in Vicinity of Timcal's Lac des Iles Graphite Mine *CLIENT Read More  |  Profile

Strike Graphite goes "Beyond the Press Release"

McLaren Resources (CNSX:MCL) Drills 7.0 Grams Gold Over 7.4 Metres at the TimGinn Property Located Adjacent to the Hollinger Mine *CLIENT* Read More | Watch Beyond the Press Release

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Message: Small Caps have an advantage

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Small Caps have an advantage

posted on Nov 04, 08 06:08AM

Bailouts and fed rate cuts work for the benefit of the small caps. They are after all seen as the acid test of the market. Here is some interesting data I patched together from various sources:

Standard & Poor’s studied the performance of large and small stocks after various series of Fed rate cuts going back to 1954. On average, in the six months after the last rate cut of a series, the Russell 2000 index advanced 14.9 percent, versus just 9.4 percent for the S.& P 500.

And 12 months after the last rate cuts, the small-cap advantage persisted. Small stocks surged 25.2 percent, on average, in the year after the Fed stopped trimming rates, versus 18.9 percent for large-cap shares.

Many small-cap companies must run more efficiently than industry-leading large caps. I think we're going to be just fine if you are long term bull.

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