Bowser Microcap Index up 33.3%, beats popular indexes

We have discussed the outperformance of small stocks a number of times. In "The Summer of the Microcap," we discuss how small stocks appear to have gotten away from the typical trend: outperforming in up markets and underperforming in down markets. More recently, that trend seems to have reappeared. Even still, the Bowser Microcap Index topped the Dow Jones Industrial Average, the S&P 500, the Russell 2000 and the NASDAQ Composite between January 4, 2013 and January 3, 2014.

The Index started 2013 off with a bang, gaining 4.6% from December 7, 2012 to January 4, 2013. However, the Bowser Index slid three straight months, from January 4 to April 5. Over that time, the value fell from 516.93 to 495.27--a loss of 4.2%. As Spring rolled around, flowers bloomed, including our Index, which rose 2.8% from April 5 to May 3, snapping its losing streak.

Then, a truly historic run began. Including the gain from April to May, the Index climbed higher for six straight months! Over that time, the value of the Index grew from 495.27 to 674.89, a whopping gain of 36%.

From October 4 to November 8, the Index cooled off. Over that month, the Index leveled off, losing a mere 0.06 points. From November 8 to December 6, the Index dropped again, bringing its two month loss to just 0.3%. Still a loss is a loss, and the Bowser Index fell two straight months.

From December 6 to January 3, however, the Bowser Microcap Index was back to its winning ways, posting a 2.5% gain. The Index ended the year strong, posting a total gain of 33.3% from January 4 to January 3. See the chart below.

Bowser Microcap Index

Bowser Microcap Index from January 4, 2013 to January 3, 2014

From January 4 to January 3, the major indexes were as follows:

The Bowser Microcap Index (+33.3%) barely edged out the NASDAQ Composite (+33.2%) for top dog. The Russell 2000 came in third with a respectable 31.5% gain. Meanwhile, the S&P 500 (+24.9%) and the Dow Jones Industrial Average (+22.6%) lagged behind, but still posted very decent gains.

Here's to a prosperous 2014!