Tag: small cap

• Get Paid to Take Risk

  

  Is the risk-reward trade-off broken? Historically smaller companies have higher stock price returns, but this relationship has faded since 2008. What happened and why aren’t investors being compensated for taking more risk? Table 1.1 shows how small-cap stocks have performed relative to large-cap stocks since the Great Financial Crisis in 2007-08. There is more volatility…

  Thomas Schleusener

  September 14, 2018

  Markets, Non-Fiction

  Asset Purchase Program, bonds, fed, federal reserve, financial crisis, GFC, large cap, QE, Returns, Risk-Reward, Size Premium, small cap, Small vs Large Cap, stocks, volatility

• Relative Performance: Equal or Market Capitalization Weighted Index?

  Using SCHA and SCHX as proxies for Small and Large cap equity markets, I attempt to measure cumulative relative performance over one (1), two (2), and three (3) year time periods. The S&P 500 is a market capitalization weighted index, meaning the biggest companies have the biggest weights in the index. The Dow Jones Industrial…

  Thomas Schleusener

  March 15, 2017

  Markets, Non-Fiction

  equal weight, large cap, market weight, outperform, relative performance, rsp, s&p 500, scha, schx, small cap, sp, spx, spy, underperform