Here’s an Odd Thing About the Stock Market

I was doodling away on some stuff and happened to notice something odd: the broader the stock index, the less it’s grown since the end of November. All of the widely tracked stock indexes spiked upward in the two weeks after Donald Trump’s victory, but since then they’ve grown very differently. Unadjusted for inflation, the Dow Jones has gone up about 15 percent. Pull out a bit, and the S&P 500 has gone up 11 percent. Pull out even further and look only at mid-size companies, and the Russell 2000 has gone up only 4 percent.

This might mean nothing. The Russell 2000 spiked a lot after Election Day, so maybe it just didn’t have a lot higher to go. Alternatively, it might mean that investors have remained pretty bullish on big companies in the Trump era but not so much on smaller ones. Here’s what the Russell 2000 looks like since November 8:

It’s barely moved since the end of November. Is this meaningful, or just some odd artifact of this particular index? I’m not sure, but I thought I’d share anyway.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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