Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Small Caps Miss Out On Stock Rally

TedTed
edited September 2014 in Fund Discussions
FYI: (Click On Article title At Top Of Google Search)

In the stock market right now, small isn't beautiful.
While blue chips are riding a bull market now in its fifth year, shares of small companies have struggled amid concerns over lofty prices and an early-year scare over U.S. growth.
Regards,
Ted
https://www.google.com/search?newwindow=1&site=&source=hp&q=small+caps+miss+out+wsj&oq=small+caps+miss+out+wsj&gs_l=hp.3...1938.9155.0.9657.23.22.0.1.1.0.189.1513.19j3.22.0....0...1c.1.54.hp..8.15.1058.6CHXCrJawjw

Comments

  • edited September 2014
    Hi Ted and others:

    Ted, thanks for posting the article on small caps. In my well diversified portfolio currently small cap funds make up about 15% of the growth area of my portfolio with mid caps making up about 25%. With this, that leaves about 60% to the large cap space.

    Here is some interesting facts on my small/mid cap sleeve. It is currently 6.25% below its fifty two week high and has a TTM P/E Ratio of 17.4 with forward estimates at 16.3. It has a dividend yield of about 1.2%. and its year-to-date return is 2.3% as of Fridays’ market close.

    Small/mid caps are drawing some of my attention and should my small/mid cap sleeve soon drop to about 7.5% below its fifty two week high ... Then, I’ll possibly add a little more to these positions. I did do a little buying last week in the small/mid cap space based on their recent weekness but now I am awaiting additional weakness before buying more and increasing them up to perhaps around 20% of the growth area.

    Old_Skeet
  • High valuation of smaller caps make this asset class less attractive rather to the larger caps. In today's slow growth environment, it is better to own blue chip stocks with global exposure.
Sign In or Register to comment.