What To Make of Small Cap Underperformance

| October 06, 2018
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Small-cap stocks were the outperformers of the market during the first half of this year.

For three months, the group of companies with market caps of less than $2 billion has underperformed large-cap stocks.

As you can see in the Chart of the Day, in September, the divergence and erosion of performance became significant.


In September, Gunzberg said, the S&P 500 climbed to a high with a 0.43% gain while the S&P SmallCap 600 fell behind with a 3.32% decline.

This created the biggest outperformance gap on a monthly basis in four years.

And it’s a rare occurrence: Over the past quarter century, the small-cap index has underperformed the S&P 500 only about 8% of the time, according to S&P Research.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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