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
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.
Regards,
Ted