SCMP Announces todays Small Cap NEWS

WEST PALM BEACH, Fla. - Oct. 22, 2014 - PRLog -- The broad stock market is having trouble finding its footing this quarter due to mountain of woes and increased volatility. The S&P 500 and the Dow Jones have fallen drastically from their peak reached in September and eroded most of their outsized gains made this year, pushing the indices slightly in the green from the year-to-date look.

While large cap stocks have been badly hit, small caps, which lost their long-lasting preference early in the year, have regained their sheen and are currently outperforming the broad U.S. market. This is because the confidence in the international economy is fading and geopolitical tensions loom large (read: Is the Worst Over for Small Cap ETFs? (http://www.zacks.com/stock/news/145326/is-the-worst-over-for-small-cap-etfs)).

Both developed markets like Japan and Europe as well as developing markets like China and Brazil are experiencing a slowdown, with Europe in the danger of falling into another recession despite the stimulus package. Further, a strong dollar and the outbreak of Ebola virus also added to the woes.

In the current fear-ridden world, the U.S. economy is showing substantial improvements defying weak global conditions. This is especially true given that the recent jobless claim reading fell to the 14-year low and the homebuilding sector has rebounded with the rise in housing starts and building permits for the last month. Manufacturing and industrial activity also picked up last month.

Though retail sales dipped 0.3% in September indicating sluggish spending by the Americans, consumer sentiment elevated to the highest level in more than seven years according to the latest survey from Thomson Reuters/University of Michigan. All these suggest that the world’s largest economy is definitely on the mend and will likely overcome the global slowdown, benefiting small caps the most.