Large Cap vs Small Cap

Mark Hulbert at MarketWatch makes a good argument for the future outperformance of large cap stocks versus small cap stocks for the remainder of the year. His view is based on a number of factors having to do with how institutional money managers are compensated. It is a worthwhile article. READ

The problem is that even though we've seen massive declines in some red hot momentum small cap stocks, I'm seeing lots of new winners as well. Take for example PC Mall (MALL). This one is moving substantially higher right now as momentum investors search for new, and relatively undiscovered picks. I don't think momentum investors are prepared to give up this game, as least not yet.