How bad has it been?

Bespoke gives us this observation:

While the S&P 500 is less than 12% off of its intraday high from October, individual stocks are faring far worse. As the chart to the right indicates, the average stock in the S&P 1500 is now over 30% off of its 52-week high. Grouping stocks by their market cap shows that while large caps have been holding up better than average, small caps have been decimated.

Here is the chart:

Coupled with the collapse in REITs I think our call to go long high quality large caps and short small caps and REITs has worked. I would argue it was a no brainer, but obviously most people disagreed, whatever they say now. So where do we go next year? I have my own ideas, but I’ll know more after our investment conference in February.

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Tags: Asset Allocation, Domestic Equities, Market Data, Risk

This entry was posted on January 14, 2008 at 11:58 pm and is filed under Data Bank, Features, The View From the Bluff. You can follow any responses to this entry through the RSS 2.0 feed.