He pointed out that the Russell 2000 is heavily weighted to health care and
tech stocks that stand to benefit from the early stages of the recovery.
“The Russell 2000 is a more ‘real’ take on the US economy than the S&P 500
and should therefore continue to advance as the country grinds its way out of the [Covid-19 crisis],” Colas said.
Watch this space: The Russell 2000 isn’t the only index of small stocks on
the rise. The Russell Microcap Index, which includes some of the tiniest US
public firms, is up 65% from its March low.
That said, since 2010, the Russell 2000 has risen 148%, while the S&P 500 is
up 205%. The tech-heavy Nasdaq is nearly 400% higher.