Wall Street Week Ahead: Valuations may hurt small caps, despite job growth

With nearly all of their revenue coming from the United States, the companies in the Russell 2000 should be the most obvious beneficiaries of a growing U.S. economy. Companies in the Russell 2000 look expensive compared with their history, said Steven DeSanctis, an analyst at Bank of America Merrill Lynch, in a Feb. 3 note to clients. The Russell 2000 is up 11.9 percent over the last 12 months, compared with a 16.7 percent gain in the large-cap Standard & Poor's 500 index over that time