One of the main themes we’ve been hitting on in the past few months/quarters is the aggressive shift in leadership down the market cap scale.
When we take a step back, this all jives with what we’re seeing in other asset classes as investors are rushing into risk assets as they position themselves more offensively.
This development really began last March as the market was bottoming from its swift Q1 selloff. Although the relative trend really accelerated in early September as Mid, Small, and Micro-Caps began to drastically outperform their Large-Cap peers.
Let’s take a look at how this cap-rotation has impacted some of the secular leaders at a sector and industry level.