The market shift of the first half of 2017
The first two quarters of 2017 saw a shift in the market along several dimensions compared to 2016. Last year, value outpaced growth and small cap outpaced large cap, according to Russell US Indexes. So far in 2017, we have seen a reversal along both dimensions, as the largest spread so far this year is with large cap growth exceeding small cap value. The outperformance of large cap (with greater sensitivity to global market factors), over small cap (with greater sensitivity to US market factors) in the first half of 2017 is notable evidence of a reversal of the “Trump Trade.” In this quarter’s Small Cap Perspectives report, we take a look at market data to help put this into perspective.
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