Russell 2000 Volatility in 2014

As tough as 2014 was for small cap stock performance as represented by the Russell 2000 (RUT – 1204.70) the index did manage to put up a positive year. At the end of the third quarter the RUT was down just over 5% on the year so all the gains (and then some) for small cap stocks came in the fourth quarter.

RUT RVX

For most of 2014 the risk perception for holding small cap stocks was justifiably high. I wrote about this earlier this week in a blog about what the CBOE Russell 2000 Index indicates about the prospects for small cap stocks going into next year. The link to that blog is at the end of this posting.

2013 versus 2014 is an interesting comparison for RVX. The index was 1.30 points higher this year that last year. Despite other volatility indexes putting in post 2008 lows, RVX did not follow suit. The only thing that really startles me on this table is that after all the negative press for most of 2014 the RUT managed a slightly positive year.

RVX Table

The blog regarding the risk perception for small cap stocks going into 2015 may be found at

http://www.cboeoptionshub.com/2014/12/30/everyone-loves-small-cap-stocks-market-say/

For more insight and thoughts about 2014 join me for a 2014 volatility wrap up webcast this coming Monday (1/5/15) at noon Chicago time – register at www.cboe.com/webcasts