Bernstein: Small Cap Stocks Poised to Gain on U.S. Strength

“While the Dow Jones Industrial Average has dropped 1.2 percent so far this year, the Russell 2000 index of small stocks has gained 1.5 percent.

That reflects the superior economic environment in the United States compared with overseas, says Richard Bernstein, CEO of Richard Bernstein Advisors, because small stocks are more tied to the domestic economy than large ones are.

“Small stocks have been up,” he tells CNBC.

“Part of what’s happening in large cap land — multinational exposure is hurting them. The market is starting to recognize the difference, that whatever is going on here in the United States is healthier than what’s going on in the emerging markets.”

Bernstein notes that it’s not surprising that Wall Street strategists are calling for gains by the stock market this year.….”

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