{"id":7338,"date":"2017-11-18T15:21:13","date_gmt":"2017-11-18T15:21:13","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7338"},"modified":"2017-11-18T23:02:18","modified_gmt":"2017-11-18T23:02:18","slug":"style-box-strategy-update-and-the-most-interesting-tweet-of-the-week","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7338","title":{"rendered":"Style-Box Strategy Update and the Most Interesting Tweet of the Week"},"content":{"rendered":"

Late Friday, November 17, 2017 @SentimentTrader posted this to Twitter:<\/p>\n

\"\"<\/a><\/p>\n

Interesting.<\/p>\n

Will we get the typical seasonal rally into the last 6 weeks of the calendar year ?<\/p>\n

———————————————————————————————————-<\/p>\n

The earnings update will be out Sunday morning, November 19, 2017.<\/p>\n

Today, given its mid-November, readers should probably see the continued out-performance of large-cap growth (most of which is Technology, but not all).<\/p>\n

FC – Value vs Growth<\/a><\/p>\n

(Click on the link to see the performance update for various styles and asset classes.)<\/p>\n

Note how “growth” is continuing to distance itself from “value” across all the equity asset classes, i.e. large-cap, mid-cap and small-cap.<\/p>\n

Only in small-caps has the “growth” premium not really expanded in 2017.<\/p>\n

Analysis \/ conclusion:\u00a0<\/strong><\/em><\/p>\n

Last year in mid-December ’16, we thought the SP 500 could be up 20% in 2017<\/a> and it turned out to be an OK call. We’ll see if in the last 6 weeks the S&P 500 can get the last 2.5% into the year’s close.<\/p>\n

Next year might be different – note how in 2016 the Russell 2000 and small-cap had a far better year than the SP 500 and large-cap growth. This year that dynamic flipped completely.<\/p>\n

Value had a good year last year as well, and a lot of that could have been the Financial bounce after the 2016 Presidential election.<\/p>\n

Here is another perspective from Norm Conley who runs JAG Capital Management, or his own shop in St. Louis.<\/p>\n

Norm addresses the “Growth vs Value” debate with a good article on the two styles:\u00a0http:\/\/jagcapm.com\/wp-content\/uploads\/2017\/11\/JAG_2MinDrill_111617.pdf<\/p>\n

Apologies for the technical issues. If this link doesnt work, check the JAG Capital Management website.<\/p>\n

In Mid-December, this blog will have the 2018 “expectations” and some thoughts on asset allocation.<\/p>\n

Thanks for reading – more on earnings tomorrow.<\/p>\n

Q3 ’17 earnings were solid, and so will Q4 likely be as well.<\/p>\n

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