The Lion in Winter: on US small cap underperformance and potential catalysts; comments on CrowdStrike outage

The Lion in Winter: on US small cap underperformance and potential catalysts; comments on CrowdStrike outage

From 1930 to 2010, there were six extended periods of small cap outperformance as it dominated large cap over that entire period.? But since 2010, small cap sits alongside value stocks and non-US stocks in the unholy trinity of underperforming portfolio strategies.? While poor profit fundamentals argue against a prolonged period of outperformance vs large cap, small cap stocks are at their cheapest levels in the 21st century with potential market and political catalysts in their favor.? First, a few words on the CrowdStrike outage.

https://privatebank.jpmorgan.com/nam/en/insights/latest-and-featured/eotm/the-lion-in-winter


Philip Sheehy

Senior Talent Acquisition Specialist - PGIM at Prudential

3 个月

you ignore the growth of ETFs and specifically products aligned to the S&P500. Index aligned S&P500 assets has become its own asset class.

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Joshua Brown

CEO at Ritholtz Wealth Management

3 个月

always the best take

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