How you allocate among broad asset classes will have a significant impact on the long-term performance and volatility of your retirement account. But what many investors don’t consider are the shorter-term implications.
What we know for sure is that one particular segment will not remain the popular trend forever. What we don’t know is when this change, or “rotation,” will occur.
MarketView Chart of the Week, posted March 31, 2000
By following the stars alone, an investor risks making overly large allocations to market segments that have recently performed strongly and underweighting those that may be due for a rebound.
MarketView Chart of the Week, posted March 10, 2000
The large differential between the S&P 500 Index and the Russell 2000 Index of smaller stocks has been characterized by some market watchers as a rotation from large-cap to smaller-cap dominance.
MarketView Chart of the Week, posted March 3, 2000
An interesting divergence has taken place thus far year-to-date among market
capitalization segments: the Wilshire 4500 Index is ahead almost 15%, while the Wilshire 5000 and S&P 500 Indexes lag behind in negative territory.
MarketView Chart of the Week, posted February 25, 2000
It seems that in 1999, investors whochose low yielding large-cap value stocks received a greater total return on their investment than investors who chose high-yielding large-cap value stocks.
MarketView Chart of the Week, posted January 21, 2000
Three weeks into the new year, last year’s laggards are the only sectors to produce positive year-to-date returns, while the hottest sectors have cooled.