While in Montreal last week, we discussed this same issue and one theory was the number of redemptions going on in mutual funds across Canada. We recall Trimark reporting net redemptions for the month of March and April, so one can conclude that other funds are going through the same process. In that case, with the Blue chip bull still racing ahead, it is easy to conclude that small caps will be the first to go when redemptions are necessary.
Can't tell you this is the answer or the only answer but taken with Steve H's remarks, we may have an answer to your question.
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