I thought this was pretty interesting, some perspective on the downturn in small-caps.
http://www.roycefunds.com/insights/2014/10/five-things-you-s…
Sort of reassuring too, as my smallcap-rich portfolio has lagged the S&P the past few months. Cheers.
I enjoyed that so thanks for sharing it. I found this part particularly interesting.
4 – The Russell 2000 has never returned between 6% and 16% in a calendar year.
This is a surprising statistic given that the average return of the index since inception was 11.8% through September 30, 2014. To have never delivered anything close to the most recent average annual total return since inception says a lot to us about the volatility of the index. We believe that after five years of mostly low volatility we are likely to see much more going forward, which has historically been good for active managers.
Thanks Utah Chris, an interesting link.
Saul
4 – The Russell 2000 has never returned between 6% and 16% in a calendar year.
This was so unbelievable to me that I had to look it up. Here’s a chart (be sure to look at the 2000 total, not just value or growth):
http://4.bp.blogspot.com/-_MXel1FL0do/Ut4VU9XzSKI/AAAAAAAAAV…
Sure enough, you get returns like 5.68% and 16.35%, so the author cherry-picked his bounds, but that’s still a pretty wide gap not to ever fill.
Good hunting!
