MARKET OVERVIEW, RESULTS & WEEK AHEAD
The Russell 2000, the smallcap index which tracks the smallest 2,000 stocks in the Russell 3000 smallcap index, nearly jumped 3% this week! This move places it at 9.9% YTD, but still soundly behind the Dow 30, S&P 500 & the Nasdaq that are well into the double digits for the year. The Russell’s move could be attributed to the Trump administration’s current emphasis and the market’s belief that a revised tax code is on the horizon. When you couple this possibility with the fact that most smallcaps’ derive the majority of their revenues domestically, the tax revision could result in a significantly positive impact if successfully implemented as planned. We have also now ended Q3, which saw commodities (including energy) lead the way. Q3 also brought about oil ‘s move up and is now in the $50/bbl range again. Could we be realizing some form of inflation?