Are small cap stocks better than large cap stocks? We talk numbers with expert two traders.

In some ways, small cap stocks are like last year's Detroit Tigers. Though not as well capitalized as the New York Yankees, the Tigers nonetheless able to sweep their richer rivals in the American League Championships. (To be sure, Detroit eventually went on to lose to Silicon Valley's home team, the San Francisco Giants.)

So, while everyone’s talking about the large cap S&P; 500 index hitting record highs, there’s another index that’s hitting record highs, too: the small cap Russell 2000, which broke the 1000 level this past Friday. And, the Russell 2000 is sweeping the S&P; 500 in returns any way you slice it.

Though the two are highly correlated (with a coefficient of 0.915), returns have been more favorable for the Russell 2000 over various terms:

Does disgraced former New York Governor Eliot Spitzer now have ulterior motives?

Would you trust Eliot Spitzer with your money?

At first, that question might seem a bit odd. After all, when most people think of monetary transactions and Spitzer, trust is not exactly the first word that comes to mind.

But that’s exactly what millions of New Yorkers are being asked to do. That’s because the man who rode a relentless crackdown on Wall Street all the way to the Governor’s mansion is now throwing his hat into the ring to be the next Comptroller of New York City. And should he win, he’ll be responsible for investing the billions that are in public employee’s pension funds.

So what kind of job will he do?

“It won’t be Corzine at MF Global,” offered Wall Street veteran and UBS’s director of floor trader Art Cashin. That’s pretty faint praise considering Corzine blew up a sleepy commodity firm and lost millions of dollars in protected customer funds and could face trial.

But Cashin says New

Famed investor Mario Gabelli thinks three companies are ripe takeover targets. And, one already has Carl Icahn on its board.

Three companies are ripe for the takeover, according to famed investor Mario Gabelli.

The CEO and Chairman of $30 billion Gabelli Asset Management Company Investors (GAMCO) appeared on CNBC’s “Fast Money” yesterday. According to Gabelli, Hilshire Brands, Post, and Navistar are underpriced.

On Hillshire, Gabelli says:

“I think Hillshire – short-term, you’ve got a little issue with regards to pork – I hope the stock drops 10% down to $29, $30 but I’m buying here at $33.”

On Post:

“Cereal was around in 1890, so I don’t have to guess whether the next Netflix will be here… It’s a small cap stock, 35 million shares of a 40-odd dollar stock. That’s where you want to forage.”

On Navistar:

“Navistar is simple. It tracks its demand from Class A trucks, ties itself to GDP, and goes through cycles… I think the stock with a market cap of $2½ billion is worth putting a few