Tuesday, February 17, 2015

Mid-Caps doing best job of growing your nest egg

by Chris Kimble



A good number of people invest in stocks with a common goal, grow their nest egg and beat the cost of living. The above chart looks at large, mid-caps, small-caps and tech stocks performance since 2000, net of inflation. The clear winner of this time period is Mid Caps, doubling the next closest index, which was small caps. The NDX 100 is bringing up the rear as it is the only index to be behind the cost of life since 2000.

If one looks at performance since the financial crisis lows in  2009, the NDX is the winner (+234%), followed by Mid Caps (+221%), Russell (+203%) and the S&P 500 (+168%).

When looking at both time frames, Mid Caps have done pretty well! So which index will beat the cost of living over the next 5 to 15 years?

Below is a look at the patterns each of these key index’s are creating at this time.



From  a Power of the Pattern perspective, I took a look at each of these key markets on a monthly basis. Mid-Caps in the upper left, are looking the best, as they are breaking above a long-term Fibonacci extension level. Russell 2000 and SPX are both attempting to break above an important Fibonacci extension levels and the NDX 100 is nearing monthly high resistance created back in 2ooo.

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