Risk and Return

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.

Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer.

No Comments »

Trackback URI |