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  • MJG October 2017
  • Ted October 2017
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Mark Hulbert: Smart Money Will Buy Large-Cap Stocks Now And Small-Caps In January

TedTed
edited October 2017 in Fund Discussions
FYI: Bigger is better for fund managers through year-end.

Wall Street’s testosterone problem notwithstanding, with stocks, smaller is usually better. But the next couple of months should be an exception.

I’m referring to the relative performance of large- and small-cap stocks. Over the long term, small-cap stocks significantly outperform the large caps — on average. According to the famous Ibbotson database, maintained by investment researcher Morningstar, small-caps’ margin of victory over large-caps since 1926 is 2.2 annualized percentage points.
Regards,
Ted
https://www.marketwatch.com/story/buy-large-cap-stocks-now-and-small-caps-in-january-2017-10-31/print

Comments

  • MJG
    edited October 2017
    Hi Guys,

    Here is the Link to the article that Ted rarely fails to provide:

    http://www.sec.marketwatch.com/story/buy-large-cap-stocks-now-and-small-caps-in-january-2017-10-31

    Mark Hulbert is an excellent market analyst and writer. This article doesn't fail to match his high standards. The reasoning might not be precisely on target, but it is a plausible explanation for the data that clearly demonstrates that the exceptional performance advantage for small cap stocks is concentrated in the month of January.

    Best Wishes for exceptional investment success.
  • @MJG: Thanks, I can use all the help I can get. I relinked the article in printer-friendly format which is a little easier to read.
    Regards,
    Ted:)
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