{"id":9144,"date":"2019-07-04T13:17:21","date_gmt":"2019-07-04T13:17:21","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=9144"},"modified":"2019-07-05T18:16:48","modified_gmt":"2019-07-05T18:16:48","slug":"stylebox-update-still-all-about-large-cap-and-growth","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=9144","title":{"rendered":"StyleBox Update: Still all about Large-Cap and Growth"},"content":{"rendered":"
\"\"<\/a>
click to enlarge<\/figcaption><\/figure>\n

 <\/p>\n

Because of the cacophony of “overvaluation” cries, it always pays to watch where the momentum is in the equity markets versus what is lagging.<\/p>\n

This style-box analysis and rotation is another way to manage market risk.<\/p>\n

Large-cap growth is still outperforming large-cap value and has been for a while, while mid-cap is closing the performance gap with large caps, but small-cap’s still lag.<\/p>\n

“Growth” is still outperforming “value” across all the market-cap segments although small-cap value is also narrowing the performance gap.<\/p>\n

Throwing this spreadsheet up every 6 weeks forces me to keep an eye on these asset classes that are outperforming and under-performing. There is a “reversion to the mean” aspect to this analysis.<\/p>\n

Summary \/ Conclusion: <\/strong><\/em>I’ll never forget the late 1990’s and the “one-way” direction of large-cap growth and Tech which left everything behind after the Long-Term Capital Management Crisis in the fall of 1998. Smallcaps started to under-perform dramatically in 1997. Large-cap Growth and Tech became like a vortex that swept everything up in its path as “value” and everything besides the top 10% of the SP 500 by market cap lagged badly.<\/p>\n

\"\"<\/a>
click to enhance \/ enlarge<\/figcaption><\/figure>\n

 <\/p>\n

Gary Morrow, one of my favorite technicians, who posts his work on Twitter (@garysmorrow), LinkedI and This Week on Wall Street, noted recently how the IJS (small-cap value ETF) keeps getting rejected at resistance.<\/p>\n

Wait for the breakout for IJS, and then it might be time to own the IJS relative to the large-cap universe.<\/p>\n

It’s interesting that as the SP 500 has made a series of new all-time highs the last weeks, FAANG (Facebook, (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOG\/GOOGL) have not yet made all-time-highs, so we are starting to see the first part of under-performance of large-cap growth ? Let’s see what Q2 ’19 earnings look like for the subset.<\/p>\n

Microsoft – not part of FAANG – and client’s largest holding – has been keeping up with the all-time-highs in the SP 500.<\/p>\n

It’s still a large-cap growth market but hopefully this update will keep you informed of when that changes.<\/p>\n

Thanks for reading. Have a wonderful 4th of July.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  Because of the cacophony of “overvaluation” cries, it always pays to watch where the momentum is in the equity…<\/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-9144","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\/9144","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=9144"}],"version-history":[{"count":7,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/9144\/revisions"}],"predecessor-version":[{"id":9154,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/9144\/revisions\/9154"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}