A little birdie

These 2 ladies taught me that "fat meat was greasy" but sometimes things are a little subtle this was lifted from WSJ Am briefing The stocks of companies with small market capitalizations have burst higher since the U.S. presidential election. The small-cap Russell 2000 Index has climbed 9% since Nov. 8, far outperforming the S&P 500's 1.8% rise. Smaller growth companies are jumping, the reasoning goes, because their revenues are more exposed to the U.S. economy, and less to the global economy. That puts them in better position to benefit if Donald Trump's statements on trade and fiscal stimulus become policies. "The strong small cap performance appears justified, as they are best positioned to benefit from the president-elect's pro-growth policies while being less exposed to the risks of protectionism and increased foreign taxation," said Bank of America Merrill Lynch analysts Dan Suzuki and Jimmy Bonilla, in a Wednesday note. A number of trades -- such as selling Treasurys or buying bank stocks -- have quickly gained momentum since the election. Some investors are skeptical of this sharp reversal of fortune post-election, and have warned that such trades could revert once there's more clarity about Mr. Trump's policy proposals. But unlike some other post-election trades, small-caps have been looking up for a while now. Through election day, the Russell 2000 was up 5.2% this year, outpacing the S&P 500's 4.7% rise. That's after underperforming large-caps by 15 percentage points during the three years through August, according to money manager Alger. An early-November survey of financial advisers, conducted by Alger before the election, found that 76% were bullish on small caps. Even without the election shift, small-caps may yet have the wind at their backs.