A Viral Market Update VIII: A Crisis Test – Value vs Growth, Active vs Passive, Small Cap vs Large!

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A Personal Viewpoint

It is still possible that the shifts in investor behavior and corporate performance could benefit small companies in the future, but I am hard pressed trying to think of reasons why. It is my belief that forces that allowed small cap stocks to earn a premium over large cap stocks have largely faded. I am not arguing that investing in small cap stocks is a bad strategy, but investing in small companies, just because they are small, and expecting to get rewarded for doing so, is asking to be rewarded for doing very little. Markets are unlikely to oblige. It is possible that you can build more discriminating strategies around small cap stocks that can make money, but that will require again bringing something else to the equation that is not being tracked or priced in by the market already.

YouTube Video

Data
  1. Market data (May 1, 2020)
  2. Regional breakdown – Market Changes and Pricing (May 1, 2020)
  3. Sector breakdown – Market Changes and Pricing (May 1, 2020)
  4. Industry breakdown – Market Changes and Pricing (May 1, 2020)
  5. Equity Risk Premium, by day (Updated through May 1, 2020)
  6. Small Cap versus Large Cap Stocks (1927-2019)
  7. Small Cap – Market Changes and Pricing (May 1, 2020)
  8. Value versus Growth ((1927-2019)
  9. PE breakdown – Market Changes and Pricing (May 1, 2020)
  10. PBV breakdown – Market Changes and Pricing (May 1, 2020)
  11. Dividend Yield breakdown – Market Changes and Pricing (May 1, 2020)
Viral Market Update Posts
  1. A Viral Market Meltdown: Fear or Fundamentals?
  2. A Viral Market Meltdown II: Pricing or Valuing? Investing or Trading?
  3. A Viral Market Meltdown III: Clues in the Market Debris
  4. A Viral Market Meltdown IV: Investing for a post-virus Economy
  5. A Viral Market Meltdown V: Back to Basics
  6. A Viral Market Meltdown VI: The Price of Risk
  7. A Viral Market Meltdown: Market Multiples
  8. A Viral Market Meltdown: Value vs Growth, Active vs Passive, Small Cap vs Large!

Disclosure: None

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