What Will Make Small Cap Stocks Great Again?

  • 📰 Forbes
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 53%

日本 ニュース ニュース

日本 最新ニュース,日本 見出し

The times, they are a changing. The advent of high-frequency traders, algorithms and index-mania have caused many long-regarded investment tenets to be challenged. One of those is the small cap value out-performance idea.

Have you ever spent time with a financial advisor whose investment approach is rooted in “asset allocation?” Most are, these days. I am not one of them, at least not in the traditional sense. But if you have been informed by one, you were probably told about some academic studies that date back a few decades.

The chart above shows what has happened to small cap value stocks since shortly after the 2016 U.S. Presidential Election. The results have been pretty dreadful. The stock market’s attention is increasingly focused on a smaller number of very large companies. Thank index investing for that. You see, while there are thousands of indexes, the money floods into larger-caps. This tends to be at the expense of other asset classes, including international stocks and small cap stocks. Money flows matter a lot these days.

Financial stocks are the largest sector group within the small cap value world. Falling interest rates in 2019 likely impact these smaller banks and other financial companies, just as they do larger ones. Since the start of the graph above, the 10-year U.S. Treasury Bond yield has dropped from 3.2% to 1.7%.I regularly track the movement of 100 ETFs, which give me an ongoing story about what is happening with global markets. That’s a lot of asset classes to track, for sure.

 

コメントありがとうございます。コメントは審査後に公開されます。
このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 394. in JP

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

After WeWork debacle, IPO market slams brakes on unprofitable companiesCompanies making their debut on the U.S. stock market are getting a rough welcom... About time ...I have been warning that these IPO models are not sustainable for the last 18 months Thanks -- get WeWork and MiguelMcKelvey out of here... As it should. Did everyone (a) collectively lose their minds and decide that every unprofitable company is just Amazon in disguise? and/or (b) forget Does anyone remember the sock puppet and the bust? It wasn't THAT long ago.
ソース: Reuters - 🏆 2. / 97 続きを読む »

Trump warns again that the stock market would crash if he is impeached'Do you think it was luck that got us to the best Stock Market and Economy in our history. It wasn't,' President Donald Trump tweets. Apparently not. Mmm ...the smell of desperation Seems like a fair trade to me.
ソース: CNBC - 🏆 12. / 72 続きを読む »

Stocks end slightly lower on trade-war worriesStocks suffered small losses Thursday, weakening following a report that Washington was unlikely to extend a waiver that allows U.S. firms to supply...
ソース: MarketWatch - 🏆 3. / 97 続きを読む »

Stocks making the biggest moves after hours: LATAM, Micron, Las Vegas Sands and moreSee which stocks are posting big moves after the bell on Thursday.
ソース: CNBC - 🏆 12. / 72 続きを読む »