We've had a huge run in the SMID cap portfolios this year, in spite of being long the market all year.
Relative Performance of US Small-Mid Cap BRI vs. S&P 1000 as of 4/28/09
QTD 1.46%
YTD 9.05%
TTM 2.73%
2Yr 4.35%
3Yr 3.81%
But I have given a little back lately in the wake of the market continuing to rise and am losing ground again today (I began selling into the rally when the Standard and Poors 500 went through 850, and am of the mind to continue selling into any rally and put on inverse ETFs, especially if it goes crazy).
The market has absorbed the swine flu fears and is powering higher with tremendous momentum behind it. We've experienced a sea-change in sentiment and there is a sense that those on the sidelines and those short the market are getting squeezed back into it. As such it has the potential to see explosive action on the upside.
Article by Willem Buiter on his FT blog encapsulates my thoughts and concerns (http://blogs.ft.com/maverecon/2009/04/green-shoots-grounds-for-cautious-pessimism/) and indicates where I am at.
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