Thursday’s action was quite bullish with stocks opening higher at the gate. Volume on the NASDAQ was tracking higher all day and depending on your data provider it was either higher or just slightly lower than yesterday. IBD stated they saw volume lower but with the price action on the NASDAQ it has vaulted back into an uptrend. The strength is in small cap names as rotation is coming out of Large Cap stocks into Small Cap and Mid Cap names. It is quite clear and something I will be taking a closer look at this weekend. Stocks are headed back into rally mode and would make a nice send off for the weekend if we can get more accumulation. Does this mean we have the green light to buy everything? Certainly not, we must remain disciplined in our trading. I would love to ...

Stocks in the US are often classified by market capitalization or by style (growth, value or blend). Those differences are not sufficient to create different asset classes, but within the US stocks asset class they have produced different results.

The categories are similar in character and their correlation with the broad US market is high (from the low 80’s to the high 90’s). For those reasons, they just don’t work well as separate asset classes. That said, they may present some element of opportunity for sub-class rebalancing gains due to return rotation within an allocated portfolio.

The chart shows the return for the index of each category for each of 11 calendar years, including 1997-2007. The top half of the chart color codes each year for each index category based on the …

Stocks in the US are often classified by market capitalization or by style (growth, value or blend). Those differences are not sufficient to create different asset classes, but within the US stocks asset class they have produced different results.

The categories are similar in character and their correlation with the broad US market is high (from the low 80’s to the high 90’s). For those reasons, they just don’t work well as separate asset classes. That said, they may present some element of opportunity for sub-class rebalancing gains due to return rotation within an allocated portfolio.

The chart shows the return for the index of each category for each of 11 calendar years, including 1997-2007. The top half of the chart color codes each year for each index category based on the level of return. The bottom half of the chart color codes each year according to

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