{"id":8016,"date":"2018-08-14T13:34:13","date_gmt":"2018-08-14T13:34:13","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=8016"},"modified":"2018-08-15T12:09:20","modified_gmt":"2018-08-15T12:09:20","slug":"style-box-analysis-update-growths-performance-premium-continues","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=8016","title":{"rendered":"Style Box Analysis Update: Growth&#8217;s Performance Premium Continues"},"content":{"rendered":"<figure id=\"attachment_8017\" aria-describedby=\"caption-attachment-8017\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/fundamentalis.com\/?attachment_id=8017\" rel=\"attachment wp-att-8017\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-8017\" src=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/styleboxreturns81018-300x132.png\" alt=\"\" width=\"300\" height=\"132\" srcset=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/styleboxreturns81018-300x132.png 300w, https:\/\/fundamentalis.com\/wp-content\/uploads\/styleboxreturns81018-768x338.png 768w, https:\/\/fundamentalis.com\/wp-content\/uploads\/styleboxreturns81018-1024x450.png 1024w, https:\/\/fundamentalis.com\/wp-content\/uploads\/styleboxreturns81018.png 1349w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-8017\" class=\"wp-caption-text\">Click to enlarge \/ enhance<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>While the large-cap growth performance premium continues, the difference between the mid-cap growth and value styles has narrowed since 12\/31\/17.<\/p>\n<p>The highlighted box is 2017 returns, which was a strong year for large-cap growth and momentum.<\/p>\n<p>What needs to be thought about for clients is what changes this dynamic ?<\/p>\n<p>Maybe higher interest rates ? Certainly in 2000 it was simply an 18-year bear market ending.<\/p>\n<p>The other aspect to this discussion is how &#8211; on the part of a retail investor &#8211; simply indexing in an SP 500 fund can be quite deceptive. The benchmark&#8217;s returns are always being driven by the heaviest market-cap weights.<\/p>\n<p>The articles cannot be located, but somewhere in the blog&#8217;s archive, the question about whether the SP 500 is simply another large-cap growth fund was addressed.<\/p>\n<p><em><strong>Analysis \/ conclusion:<\/strong><\/em>\u00a0Tech and momentum was sold too early for clients this year, but some of the proceeds went into small-cap value (IJS) for clients. Note the reversal of fortunes for small-cap value from Q1 &#8217;18 through last Friday, August 10th, 2018.<\/p>\n<p>Tech momentum continues to surprise but it&#8217;s a secular bull market for US stocks.<\/p>\n<p>Be careful out there.<\/p>\n<p>Thanks for reading&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; While the large-cap growth performance premium continues, the difference between the mid-cap growth and value styles has narrowed since&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[148,142],"tags":[],"class_list":["post-8016","post","type-post","status-publish","format-standard","hentry","category-earnings-weight-vs-market-cap","category-style-analysis"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8016"}],"version-history":[{"count":3,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8016\/revisions"}],"predecessor-version":[{"id":8020,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8016\/revisions\/8020"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}