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Small-Caps Sizzling, But The Rapid Advance Won't Hold

By George Leong for Investment Contrarians

At the beginning of January, I said "small-cap stocks will be a key driver of the broader market should the U.S. and global economy continue to improve" in 2013.

Small-cap stocks have been impressive early on in 2013, as the Russell 2000 is up 8.7% this year, increasing 2.3% in February alone, with the index trading at record highs above the 900 level. Small-cap stocks are easily outperforming the broader market in 2013.

In my view, continued economic renewal will drive small-cap stocks higher, as these companies tend to be able to react quicker to a changing economy.

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