Tag Archives: financials

Growth Is Still Hot Only In Small Caps

In July, the total return of the S&P SmallCap 600 Growth was 3.75%, which was 1.15% higher than the total return of 2.60% generated by the S&P SmallCap 600 Value.  This is interesting since typically growth does not outperform value in small caps when value outperforms growth in large and mid caps.  (In July, the total Read more […]

In Small Caps, Financials Rise Most From GDP Growth

On Friday morning the GDP (Gross Domestic Product) for Q2 2018 is set to be announced, and the consensus estimate from the Wall Street Journal survey of more than 60 economists is at 4.1%, the highest (actual) growth since Q3 2014.  Although forecasts greatly vary this quarter, the main factors likely influencing growth are tax policy, retail Read more […]

Small Cap Premium Is 5th Biggest In History

Small caps are outperforming large caps (S&P 600 (TR) – S&P 500 (TR)) in H1 2018 by the most in eight years, since H1 2010, from growing  concerns over rising tariffs and general U.S. foreign trade policy. In the past four months, the smaller companies have outperformed larger companies by 10.1%, contributing to the 5th biggest Read more […]

Here’s How A Rising Dollar Impacts Stocks

The U.S. dollar hit a 4 month high last week from concern over potentially faster interest rate hikes to control inflation as oil exceeded $70 per barrel and the lowest unemployment since 2000 was reported.  If the U.S. dollar continues to strengthen, it may be useful to know how U.S. equities moved historically in times when the Read more […]

Small Caps Rebound Big in March

The first quarter of 2018 will be remembered as the quarter that ended the 9 quarter winning streak for the S&P 500 (TR).  As the volatility rose, the market went from posting its best January since 1997, up 5.7%, to losing 3.7% in February, its first monthly loss in 15 months.  February wasn’t only bad Read more […]

Where May Equities Go From Here?

February ended the longest historical monthly winning streak of 15 months for the S&P 500 (TR) that lost 3.7%.  On a total return basis for the month, 10 of 11 sectors lost, which has only happened in 12 of 342 months or 3.5% of the time (all 11 lost together in 13 months for a Read more […]

Financials Beating Tech Twice Is Rare, So Positioning Matters

Historically, the sectors of Information Technology (Tech) and Financials have moved in cycles with Tech mostly outperforming since 2008.  In the past 10 years (data ending Dec. 12, 2017,) Tech has outperformed annualized by 8.2% and the outperformance has been solid until last month.  The levels hit their widest spread on Nov. 27, but the Read more […]