FYI: For almost a century, the relative performance of small-cap stocks to large-cap stocks followed a fairly predictable pattern—or at least as predictable as the market gets. But something has changed in the past decade or so, and the size factor doesn’t trend the way it used to. For investors, that makes betting on the size factor less of an ideal trade than it once was.
Consider: Since 1926, there have been six periods when small-caps outperformed large-caps, and six when large outperformed small. The former lasted an average of 6.1 years, while the latter lasted 6.4 years, according to Leuthold Group data.
No longer. The small-cap Russell 2000 index outperformed the large-cap Russell 1000 by 4.8 percentage points in the first half of 2018, but underperformed by 7.7 percentage points since then until this week
Regards,
Ted
https://www.barrons.com/articles/betting-on-stock-size-isnt-working-the-way-it-once-did-1542285900?mod=hp_DAY_7
