From Frank Holmes of U.S. Global Investors:

In volatile markets, small stocks typically lag larger companies as investors flee what they perceive to be risk. However, this love affair with large caps is generally short lived as investors return to the beaten-up small caps when the turmoil subsides. Historically, small caps have outperformed their larger counterparts.

In 2011, junior miners were shunned, but Global Resources Fund (PSPFX) co-portfolio managers Evan Smith and Brian Hicks pointed out to me this week that we're beginning to see signs of small-cap strength.

This chart compares the performance of the S&P TSX Venture Index (TSX), which holds a basket of junior resources stocks, to the returns of the Morgan Stanley Commodity Related Index (CRX). You can see that the junior stocks began...

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More on junior resource stocks:

How to make 1,000%-plus on junior mining stocks

How to significantly reduce the risk of junior gold stocks

Where the selloff in gold, silver, and junior miners could end