Matt Maley, an equity strategist at Miller Tabak & Co., added that small-cap stocks could run out of steam when the rising dollar starts to slow down.
“Since the dollar has been a big catalyst for the out-performance of the Russell, we wouldn’t be chasing the small caps at these lofty levels over the very-short-term,” he wrote to clients last week. “Over the near-term, we are looking for a period of under-performance in the Russell 2000.”
This article was provided by Bloomberg News.