It’s refreshing to see the microcaps rebound after a somewhat tepid last two months, during which many stocks we track were down significantly from their highs. On this point, in our June 2024 Review monthly newsletter, you might have noticed that we adjusted our Model Portfolio/Screen performance table to reflect stocks rising only more than 10%. We did this to be able to actually include about the same amount of stocks we are usually able to highlight when using our usual 20% to 25% benchmark.

So, this rally in the smaller cap market, spurred by the recently reported cool inflation numbers, marks the first major movement since the end of 2023, when it rose nearly 30% in the last 2 months of 2023.