I'd say the small caps are a lot more exposed to liquidity...

I'd say the small caps are a lot more exposed to liquidity flight than the majors.

Large cap stocks are insulated (somewhat) by the large Instos and superannuation schemes, that are compelled to stay in the ASX200, whether they like it or not.

Mom & Pop shareholders, that want to stay in the ASX, also tend to move their portfolio into the ASX200, for a perceived defensive position, realising the above..

The small caps are left with the dregs, a shrinking pool of high risk gamblers and day traders, competing with each other, trying to eak out a living from pip movements on low daily volumes.

If you see large cap stocks like BHP, WBC and others all bleeding MC, or even just treading water, over the last 18 months, you know that hundreds of millions are being transferred out of the market.

What hope have the small fry got?