Q: If the Russell index outperforms the S&P 500 based on February 15, 2024 Market Lab Report, is the Russell 2000 TNA likely to outperform the NASDAQ-100 TQQQ?
A: While history going back decades shows the Russell outperforms other major indices over the following year by playing catch up when performance differences are at their greatest, it has overall underperformed other major indices since QE began in late 2008. The market continues to favor tech-heavy large cap indices in this highly unusual environment. The Feb 15 MLR highlighted that just because we have a huge performance difference between the Russell 2000 and the other major indices with the market being led by only a handful of names is not necessarily bearish in this era of QE.
Market Lab Report - FAQ: Russell 2000 vs. NASDAQ-100?
| Published: | 20 Feb 2024 06:01 ET |
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