What about the smaller companies stateside? For the most part, we're still witnessing a preference for larger, well-known brand names over the perceived risks associated with the lesser-knowns. The
iShares Russell 2000
price ratio to the S&P 500 may demonstrate a bit more "give-n-take" between large company stock and small company stock, but the momentum still favors the largest corporations.
The take-home? If you're going to allocate more to stocks, don't get sucked in by an erroneous notion that money is pouring back into the highest-beta, most-volatile assets.
Exchange-traded vehicles like
SPDR S&P 500
Vanguard Dividend Growth
Vanguard High Dividend Yield
are still providing more reward for the volatility than the above-mentioned competition... and even there I strongly recommend the
protection of stop-limit loss orders
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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