{"id":8703,"date":"2019-02-17T16:22:29","date_gmt":"2019-02-17T16:22:29","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=8703"},"modified":"2019-02-17T16:22:29","modified_gmt":"2019-02-17T16:22:29","slug":"style-box-update-small-and-mid-cap-value-outperforming-large-cap-growth","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=8703","title":{"rendered":"Style Box Update: Small and Mid-Cap Value Outperforming Large-Cap Growth"},"content":{"rendered":"
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Click to enhance \/ enlarge<\/figcaption><\/figure>\n

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The bounce in the various US equity asset classes since December 24th and December 26th, is resulting in the small and mid-cap sectors within the SP 500 outperforming large-cap and growth for the first time in – well – a while.<\/p>\n

If readers would look at the attached spreadsheet, the last time we saw small and mid-cap “value” outperform “growth” was 2016.<\/p>\n

Will this last ?<\/p>\n

It’s hard to say.<\/p>\n

Summary and conclusion: <\/strong><\/em>The dramatic ‘style” out-performance by large-cap growth since the last correction in Q1 ’16, might be coming to an end. The plan is to keep readers updated usually every 6 weeks at the end of each quarter and then mid-quarter, but the returns aren’t always posted in a timely fashion.<\/p>\n

Here is the thing though for readers: with every substantial correction in the SP 500, typically the ensuing rally is always somehow different than the rally prior to the correction. Just look at the Energy sector – the Energy sector was 14% – 15% of the SP 500 by market cap as of August, 2014 and then the collapse in the price that eventually bottomed in Q1 ’16 near $28 per barrel, but Energy’s market cap as a percentage of the SP 500 hasn’t gotten anywhere close to that 14% – 15% weight.<\/p>\n

With every correction, each ensuing bull market rally is always somewhat different in nature, leadership, etc.<\/p>\n

Small and mid-cap value have been in the penalty box for the last few years. Will they now lead again ?<\/p>\n

Thanks for reading…<\/p>\n","protected":false},"excerpt":{"rendered":"

  The bounce in the various US equity asset classes since December 24th and December 26th, is resulting in the…<\/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":[142],"tags":[],"class_list":["post-8703","post","type-post","status-publish","format-standard","hentry","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\/8703","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=8703"}],"version-history":[{"count":2,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8703\/revisions"}],"predecessor-version":[{"id":8706,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8703\/revisions\/8706"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}