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. It looks like we are one of them