For the past six months US small caps are performing better than large counterparts as measured by Russell 2000 and S&P 500 indices. Since late october 2014, Russell 2000 rose 13.7% compared to 4.4% rise in S&P 500. Chart courtesy Sober look
- Investors remain bullish on US stocks, however exercising cautions over stronger US dollar.
- Large corporate houses that have presence across globe are expected to suffer from stronger US dollar as export revenues and royalty payments will get affected.
- According to EPFR, intelligence provider on Global fund statistics after nearly $31.5 billion withdrawal for the sector in 2014, this year they have started attracting flows. Investors expect small companies to benefit most out of US recovery amid stronger dollar.
- Average sales per share is up 6.6% this year for S&P600 companies so far this year, compared to 0.1% for large caps.
- UBS expects earnings for small companies would be in double digit this year whereas average for large caps would remain in single.
- Investors remain most bullish healthcare and pharmaceuticals whereas energy sector is expected to do worst.
- Bluebird bio returned more than 300% since February 2014, followed by Agios Pharma and Achillion Pharma both of which have returned more than 200%.


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