September Market Update

Written by Andy Pratt, CFA on .

In what has been a year dominated by large tech stocks – Apple, Google, Amazon, etc. – September was a good month for Size and Style underdogs as Small-cap stocks outperformed Large-caps and Value stocks held the edge over Growth stocks. Earlier we noted how stocks were not participating in this year’s stock rally evenly and, while this is still true to some extent – even after this month, Value stocks have only returned half of what Growth returned – the gap between smaller and larger companies shrunk significantly.

September 2017 SS

Quick Links on the GOP's Tax Reform Proposal

Written by Andy Pratt, CFA on .

The long awaited and long promised Tax Reform bill was finally introduced yesterday by leaders of the GOP. While it is light on specifics, there are several broad concepts proposed that, if passed, would have implications for many.  Due to likely opposition from Democrats and deficit hawk Republicans alike, in addition to challenges keeping projected tax cuts below $1.5 trillion over the next 10 years as required by Congress’s Reconciliation Process, any bill that passes will likely look different from this proposal.

Still, it is good to understand what this bill is and isn’t and how it might affect you and your investments.

Below are quick links to help:

July Market Update

Written by Alex Shen, CFA and Andy Pratt on .

After taking a one-month break, Large Growth stocks continued their year-to-date outperformance in July, returning 2.6% on the month and 16% so far on the year.  To put that into perspective, the lowest performing Size and Style market segment is Small Value which gained 0.7% in July and only 1.6% so far in 2017.

Interestingly, this is a 180-degree change from 2016 when Large Growth stocks were the worst performers and Small Value stocks the best, highlighting the dangers in short-term performance chasing.

2016 vs 2017 SS

Small Value stocks were the best performers last year but are the worst performers this year

June Market Update

Written by Alex Shen, CFA and Andy Pratt on .

Through the first half of the year, growth stocks are running well ahead of value stocks and large-caps have a decided edge over small-caps. There is a double-digit return differential between the extreme size and style corners as large-growth stocks advanced 13.3% against small-value’s 0.9% rise. The year-to-date trend reversed in June slightly, however, as the mega-cap darlings faced selling pressure, perhaps a sign they’ve run too far too fast.

201706 SS Chart