IWM / The Russell 2000 Remains The Weakest Link - We Are Short IWM

History tells us that market pullbacks are an inescapable part of investing. However, markets can change on a dime when the crowd least expects it, so more_horizontal

The Russell 2000 index is in trouble as interest rates punish America's small-cap companies get punished by high-interest rates. The closely watched i more_horizontal

Small-cap investing has changed and may no longer add significant value to portfolios compared to the past. The S&P 500 has become skewed toward large more_horizontal

The iShares Russell 2000 ETF (IWM) was launched on 05/22/2000, and is a passively managed exchange traded fund designed to offer broad exposure to the more_horizontal

Small-company stock indexes reached for new 52-week lows this week, indicating a bearish market trend. Rotten breadth participation outside of a handf more_horizontal

Small caps have struggled due to high interest rates and weak fundamentals. They have continued to suffer from underperformance against the S&P 500. T more_horizontal

I spent all of last week in the media and in print, going over the importance of 2 key indicators. more_horizontal

The bearish forecast for stock indices still appears to be on track, and we expect to see more declines going into spring 2024. Our previous post co more_horizontal