Style-box Strategy Update And The Most Interesting Tweet Of The Week
Brian Gilmartin | Nov 18, 2017 11:44PM ET
Late Friday, November 17, 2017 @SentimentTrader posted this to Twitter:
Interesting. Will we get the typical S&P 500 seasonal rally into the last 6 weeks of the calendar year?
*
The earnings update will be out on Sunday, November 19, 2017.
Today, given it's mid-November, readers should probably see the continued out-performance of large-cap growth (most of which is Technology, but not all). Click here to see the performance update for various styles and asset classes.
Note how “growth” is continuing to distance itself from “value” across all the equity asset classes, i.e. large-cap, mid-cap and small-cap.
Only in small-caps has the “growth” premium not really expanded in 2017.
Analysis / conclusion:
Last year in mid-December ’16, we thought the S&P 500 could be up 20% in 2017 and it turned out to be an OK call. We’ll see if in the last 6 weeks the S&P 500 can get the last 2.5% into the year’s close.
Next year might be different – note how in 2016 the Russell 2000 and small-caps had a far better year than the S&P 500 and large-cap growth. This year that dynamic flipped completely.
Value had a good year last year as well, and a lot of that could have been the Financial bounce after the 2016 Presidential election.
Here is another perspective from Norm Conley who runs JAG Capital Management, or his own shop in St. Louis. Norm addresses the “Growth vs Value” debate with a good article on the two styles.
Apologies for the technical issues. If this link doesn't work, check the JAG Capital Management website.
In Mid-December, this blog will have the 2018 “expectations” and some thoughts on asset allocation.
Thanks for reading – more on earnings later today or tomorrow.
Q3 ’17 earnings were solid, and so will Q4 likely be as well.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.