Microbrew? (by Fayssoux)

By -

Microcap stocks (sub $500 million in market capitalization)
have started to
underperform the big cap indices, just as they did last fall
and in February.  They may be a
relative to Tim’s point “It’s happening again.” 

More domestically focused, more credit dependent, and more harnessed to
consumer than large multinationals, they get less benefit from a weaker
dollar.   Individually illiquid on any given day, they can go down
fast if selling happens in earnest (
ZQK and AAPL were both Q2 Galleon holdings; one
went down much faster than the other recently, as an example, maybe a
coincidence, maybe not).  Chart below
IWC (microcap ETF) versus SPY (S&P 500).  IWC led the way up since March and turned
this month.  It is down 2% today.