SEA CHANGE

摘要

Since the end of 2002 the small- and midcap indexes have been the place to be. From Dec. 31, 2002 to the middle of this September, the Russell 2000 small-cap index is up an annualized 20.4% and the Russell midcap index is ahead 21%, which handily bests the 13.5%-a-year performance of the S&P 500 (all sizable stocks) and the 14.3% on the Russell 1000 large-cap index. Is the fact that small companies have been hot a reason to buy them now? No, just the reverse. You should sell shares of small and medium-size companies. Put the proceeds into the shares of big companies.