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Small-Cap Stocks Are On A Roll

FYI: Risk has been in style recently. And that’s been good for companies with small market values.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2016/08/04/small-cap-stocks-are-on-a-roll/

The S&P 600 is up 4.01% YTD

Counterpoint: "Stop Carrying The Torch For Small Caps — No Matter What Payrolls Tell Us":
http://www.marketwatch.com/story/stop-carrying-the-torch-for-small-caps-no-matter-what-payrolls-tell-us-2016-08-05/print

Comments

  • edited August 2016
    One of my small/mid cap funds, PMDAX, is indeed on a year-to-date roll ... up 16.6% ... plus, it sports a nice dividend!
  • thanks for the heads up Ted and Skeet. Is there a way to get the load waived on PMDAX? Any thoughts on Wasatch Core Growth? curious if you are adding funds to this asset class...
  • @MFO Members: In afternoon trading the S&P SmallCap 600 is up 1.40% , and the Russell 2000 1.50%. The trend is your friend !
    Regards,
    Ted



  • Old_Skeet
    11:33AM edited 11:35AM Flag
    One of my small/mid cap funds, PMDAX, is indeed on a year-to-date roll ... up 16.6% ... plus, it sports a nice dividend!
    MikeW
    11:44AM Flag
    thanks for the heads up Ted and Skeet. Is there a way to get the load waived on PMDAX? Any thoughts on Wasatch Core Growth? curious if you are adding funds to this asset class...
    PMDAX.lw NTF at Schwab: $100 basic, same for IRA. But PMDIX with .86 ER at Scottrade for same amounts but $17 TF. Haven't looked at other third parties.
  • edited August 2016
    Hi @MikeW,

    Thanks for the question.

    For me, I am thinking of again rebalancing my portfolio and trimming back my allocation in equities. According to last Friday edition (July ending) of the WSJ the S&P 500 Index is selling at a TTM P/E Ratio of 25.0. For me, most equities are too richly priced for me to even think of adding to current positions (much less opening new positions) as I am in the trim mode keeping equities at about 45% of my asset allocation.

    Now, if we should get a good pullback (10% range) in the near term I most likely will become a buyer in equities and add to some current positions; and, then perhaps after the rebound lighten up in some other positions. With this, a rebalance within my equity allocation itself.

    Thus far, PMDAX has been a great fund for me; and, one that I have owned for about five years. It makes up about 60% of my small/mid cap sleeve found in the growth area of my portfolio. The other two small/mid cap funds that I own in this sleeve are ABSAX and PCVAX.
  • edited August 2016
    MSCFX +13.19 YTD. I always trim and consolidate just after the New Year. This one has been a good one for me. I bought it first in 2012 at $12.59. (Edit: Friday, 05 Aug: up +14.78%.)
  • SMDV has also been on fire and sort of surprising that it's performance since last year has been so strong. Definitely one of the most compelling options I've seen in a while
  • edited August 2016
    Consider DES (Wisdomtree Small Cap E.T.F.) in lieu of PMDIX?
  • edited August 2016
    Ted said:

    @MFO Members: In afternoon trading the S&P SmallCap 600 is up 1.40% , and the Russell 2000 1.50%. The trend is your friend !
    Regards,
    Ted

    Yes ... But ... June '15 still not exceeded - another 52pts to go. Is that telling us something?

    The only thing I can think about that today's action is telling us is that maybe the FED hike won't happen. Small caps are thought to be interest rate sensitive.


    http://finance.yahoo.com/quote/^RUT/?p=^RUT
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