Small Caps
Large Cap Versus Small Cap: Performance Parity 1979 To Date
Over this entire period, the S&P has narrowly beaten the Russell 2000, but not by much.
Small Cap Appeal Is Fading
After already rallying substantially from the March lows, it will be tougher for small caps to continue their outperformance.
Bull Markets: The Best Comes First
New bull markets are front end loaded, with the strongest performance usually coming within the first few months. Study also shows that Small Cap Growth stocks tend to outperform their Large Cap and Value counterparts.
Small Cap Stocks: An Extension In Leadership?
Small Cap leadership trend maybe re-emerging. Doug Ramsey examines Small Cap performance coming out of bear markets. Historically, they have been able to do well as higher beta plays.
Small Cap Outperformance: More Questions Than Answers
Small cap out performance so far in 2008 is baffling. Earnings growth has been weak relative to large caps and valuations are still excessive. Interestingly, EAFE Small Cap Index is underperforming, while its U.S. counterparts are doing well.
Small Caps Succumbing
Why have Small Caps been outperforming Large Caps since January?
Small Caps' Stumble Is A Global Affair
Small caps have trailed the S&P 500 performance by 12-15% since peaking out on a relative basis in the spring of 2006. International small caps have broken down even more decisively on a relative basis.
Bad Breadth Is A Global Concern
Bad breadth is a global concern. It may come as a surprise that foreign breadth is actually weaker than U.S. readings.
Cautious On Small Caps
Small Cap outlook continues to deteriorate. Despite recent underperformance, valuation premium is not shrinking.
Small Cap Earnings Lag As Economic Recovery Matures
Third quarter earnings show a widening gap between Small Cap earnings growth and Large Cap earnings growth. In the past two recessions, the gap in earnings growth between these two market cap tiers also widened with Small Cap earnings fading.
Did You Have The Right Mix In 2005?
2005 Performance Recap: Equities, Fixed Income, Large Vs. Small Caps, Weighted Vs. Unweighted S&P 500, Industrial Metals and AdvantHedge.
Advance/Decline Line & Price Line Divergences Offer Guidance
Using Breadth Dynamics to assess strength of small cap stocks versus large cap stocks within various broad market sectors: Health Care, Materials, Consumer Discretionary, and Energy.
Narrowing Of Breadth Among Small Caps
Leuthold Group specialized Advance/Decline Lines indicate fading breadth among Small Caps.
Small Cap Breadth Deterioration…..A Transition To Large Cap Leadership?
Still think Small Caps have leadership position over Large Caps, but it is getting more difficult.
Leuthold Small Cap Leadership Model: Still Rated Slightly Positive
Small caps continue to be favored over large caps by our Small Cap Leadership Model, despite slightly lagging the large caps in January’s performance.
Large Cap Versus Small Cap
Small caps continue to be the market leaders over large caps. This trend is expected to continue into 2005, as our small cap leadership model has recently improved, and is now rated slightly positive.
Leuthold Small Cap Leadership Model: Improved, But Still Rated Neutral
Small cap stocks continue to be market leaders in November. Our small cap leadership model had a slight improvement, but is still neutral. On a valuation basis, small caps are no longer attractive, but they still look good on a momentum basis.
Answering Client Questions
Jim Floyd devotes several pages of “Inside The Stock Market” to answer client questions. Included are questions about reported versus operating earning, the impact of inflation on small cap stocks, and our rationale behind our interest rate target among others.
Leuthold Small Cap Leadership Model: Less Negative, But Still Rated Neutral
We have been proponents of Small Cap stocks since the beginning of the bear market. However, we may be approaching a transition to Large Cap leadership.
Leuthold Small Cap Leadership Model: Less Negative, But Still Rated Neutral
Small Caps were big winners in September, but our Small Cap/Large Cap leadership model is still neutral (despite a slight improvement in October). Transition to Large Cap leadership is likely in coming months, but momentum continues to favor Small Caps.
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