The Surge in Small-Cap Value

The stock market didn’t have what experts call “a good” first decade of this century. It’s kind of rough when the stock market falls in half twice within nine years.

However, below the radar, small-cap value stocks have done quite well. They were severely underpriced at the peak of the Tech Bubble in 2000.

This chart shows the total return of the Wilshire 5000 (red line) compared with the total return of the small-cap value sector (blue line). It’s not even close:

This is another reason to be cautious when people discuss “the market” as if it’s one giant entity.

Posted by Eddy Elfenbein on August 14th, 2013 at 2:48 pm

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