Larger Cap Stocks Lead in 2012

The graphic to the right may look like the reception bars on your cell phone, but it's actually a representation of the year-to-date returns for the major market cap categories - small, mid, large and mega.  The leadership of large and mega cap stocks in 2012 echoes the message that Don has shared with us throughout the year - with the uncertainties surrounding the Eurozone, large investors abroad have sought highly liquid US stocks as a safe haven.
Drilling down to look at this year's market cap performance in the typical style box format below, you can see that large caps (core, growth and value) lead the mid cap styles, which all lead the small cap styles - very segmented performance along the market cap lines.  Furthermore, it's also interesting to note that for large and small cap stocks, value stocks lead this year, while mid cap growth stocks are ahead of mid cap value stocks.

It will be interesting to see how this trend plays out as we head into the traditionally strong November to April season for the stock market, especially since smaller cap stocks led the rally at the beginning of this year.  We'll continue to watch the development in the style boxes as we finish out the year and head into 2013.  You can also stay up to date on this progression by checking out our World Wrap report (click here to learn more if you're not a subscriber) each Monday where you'll find the graphic to the left uupdated every week on the second page.

NOTE: The following ETFs were used in the calculations above - Mega Caps: OEF, Large Cap Core: IVV, Mid Cap Core: IJH, Small Cap Core: IJR, Large Cap Value: IVE, Large Cap Growth: IVW, Mid Cap Value: IJJ, Mid Cap Growth: IJK, Small Cap Value: IJS, Small Cap Growth: IJT.
Justin Wood
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