With the possibility of a rising interest rate environment at hand, the risk of small cap underperformance could be growing for investors.
Despite the recent outperformance of growth stocks in the post-2008 economic recovery, in the long run, and over several business cycles, academic studies tend to show that value stocks outperform growth stocks.
Should interest rates begin rising as a result of a progressive Fed taper, post-2008 investment returns based on index-specific allocation could see major changes.
Determining which index, with its specific risk factors, is the most appropriate for an investor depends upon the investor’s appetite for risk.
This article considers overall exposure to major indices, and later considers whether an investor might prefer to allocate more or less to value versus growth shares, and to large versus small companies.
This article considers the risks associated with investing in high momentum stocks in the current environment of declining Fed bond purchases.
The Federal Reserve Bank could end its bond buying program by the end of this year, so it’s important for investors to know how this development could impact their portfolio.
As investment data has shown signs of recovery, growth stocks have continued to rally and outperform value stocks.
Investment recovery supports broad indices The below graph reflects the dramatic recovery in U.S. equity prices since the 2008 crisis and the improvement in investment data. The outperformance of the…
This article takes a look at the non-residential fixed investment component of investment in the USA and considers the implications for equity investors.
This article takes a look at the fixed investment component of investment in the USA and considers the implications for fixed income investors wary of rising interest rates.
This article considers the impact that weak residential investment data has on the overall investment recovery and the implications for investors.
This article considers the implications of growing business inventories in the context of an improving investment environment and the outlook for investors.
This article considers the strength of the non-residential investment recovery and the macroeconomic outlook for equity investors.
This article considers the recovery of private-sector investment and the macroeconomic outlook for equity investors.
This article considers the sustainability of the fixed investment recovery and the implications for investors.
This series examines the current U.S. macroeconomic data pertaining to domestic investment and considers the implications for both equity and fixed income investors.
This article considers the improvement in investment data and the impact recent developments could have on future consumption data and equity markets.
This article considers the importance of investment, including residential investment, in the support of U.S. consumption data and the implications for investors.
his article considers income growth across quintiles of income levels in the USA and the impact this data could have on consumption, corporate profits, and equity prices.