As I have been pontificating for some time, large cap growth is not the place to be. I have been a big proponent of mid-caps with a keen eye on small caps. Just a snapshot of what we have seen generally across the capitalization spaces:
Having a focus on growth (instead of value, which to me does not make sense at this juncture) we see the following:
Over the last three months, small-caps have outperformed mid-caps by 200bps. Yeah, when markets are choppy, small-caps will have more volatility, but if you are invested, continue to shift into small-caps.
Now this probably isn't news to many folks, but I feel the need to get it out there.
Interesting trade idea though might be a growth/value arb. Long IWO, short IWN.
No comments:
Post a Comment