Small Caps
Leuthold Ten Factor Small Cap Leadership Model Update: Still Neutral
Small Cap stocks lagged Large Caps in July and August. Possibly getting close to a formal transition in which Large Caps take over the leadership role.
Leuthold Ten Factor Small Cap Leadership Model Update: Still Neutral
Market seems to be moving toward a possible leadership transition from small/mid caps to large caps. Small caps significantly lagged large caps in July, and also now lag YTD.
New Leuthold Ten Factor Small Cap Leadership Model
A matrix of factors to assess the relative attractiveness of Small Caps vs. Large Caps.
Small vs. Large Cap Leadership...Small Cap Domination Also Getting Late In The Game
Still prefer the Small caps over Large caps, despite the fact that small caps are now selling at 1% premium relative to large caps, and that the small cap leadership phase is getting long in the tooth.
Small Cap Leadership…..7th Inning, But Game Could Be Rained Out At Any Moment
Our equity exposure still overweight in small and mid cap stocks, but we expect the market is progressing to a state of parity.
Bull Market: Part II
Bull Market Part II. Early 2004 correction seems over, rally appears to be developing
Equity Performance By Market Cap Tiers
Weighted versus Unweighted S&P 500 comparison, Russell 2000 versus S&P 500 annual comparison and 2003 equity performance by market cap tiers.
Price To Sales Ratios....Are Small Caps Still Significantly Cheaper?
On a price to sales basis, small caps sold at 43% discount to large caps at the end of 1999, but this has virtually disappeared in the past four years of strong small cap performance.
A Closer Look At Small Caps Versus Large Caps
Weight of evidence no longer overwhelmingly favors Small Cap leadership, but we believe they still have upside potential.
Client Questions
Answering client questions on the economic recovery, bull market upside, valuations, Main Street and what could go wrong?
S&P 500 Not Overvalued
The index is not currently “overvalued”…..Nor is it undervalued. Small/mid cap stocks cheap, but large caps also getting attractive.
Large Cap Versus Small Cap: Inside The S&P 500
Poor performance by large cap technology and nifty fifty type issues had a very negative impact on S&P 500 cap weighted performers for the past three years.
Answering Client Questions
Many of the questions in this month’s issue came from December’s client meetings in Chicago.
January Effect: Now Arrives In December
Buy now to play January effect. Every year, over the last ten years, small caps have beaten the large caps in December!
Do Small Caps Lead When The Dollar Is Falling?
Performance results make a case that a declining dollar may be more favorable to large caps than small caps.
Comparing Small Cap Performance Measures
Small Cap indices performance divergence. Why has the S&P 600 significantly outperformed the Russell 2000 the past two years?
Why We Still Favor Small Caps Over Large Caps
Prior history shows average period of small cap dominance is about five years...longer than that experienced in the 1990s.
Large Cap Versus Small Cap: S&P 500 Versus Russell 2000
For the third straight year, the Russell outperforms.
Growth Versus Value—Transition To Growth Leadership?
The weight of the evidence points toward a transition from value leadership to growth, with small caps leading the way. But, getting the timing right is no easy matter.
Growth Vs. Value—Transition to Growth Leadership?
It appears that a transition to growth leadership is already underway in the small caps segment of the market.
Perception for the Professional
March 2026 Issue
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March 2026 Issue
