It appears that small cap has absolutely dominated the last few years. What do you believe will dominate the next few years?
believe it or not Historically Small cap value dominates...but i think goin forward the inefficiences of investing and evaluationg the foreign markets as well as foreigners beginning to invest in threir own counties start to take placea on a more accepted level and those markets far outpace as they have so many years of "catching up" d
Are you absolutely certain that the small cap value is historically the best? I didnt really drill down into the data, but I use www.russell.com calculator to get different views of the market. You can use the calculator to go mtd, qtd, ytd, 1-11 years out. According to their 11 year outlook, it appears that Mid-Cap Value seems the most aggressive. In all cases, value does seem to outpace growth stocks. Russell 3000® Index 9.85 Russell 3000® Growth Index 6.85 Russell 3000® Value Index 12.07 Russell 3000E⢠Index -- Large-Cap Indexes Russell 1000® Index 9.90 Russell 1000® Growth Index 7.03 Russell 1000® Value Index 11.97 Russell Top 200® Index 9.12 Russell Top 200® Growth Index 6.68 Russell Top 200® Value Index 11.13 Russell Top 50⢠Index -- Mid-Cap Indexes Russell Midcap® Index 12.66 Russell Midcap® Growth Index 9.34 Russell Midcap® Value Index 14.10 Small-Cap Indexes Russell 2000® Index 10.16 Russell 2000® Growth Index 5.62 Russell 2000® Value Index 14.01 Russell 2500⢠Index 11.92 Russell 2500⢠Growth Index 7.83 Russell 2500⢠Value Index 14.37 As well, looking at the S&P indexes, it does appear that mid-cap value has dominated the last 10 years. http://www2.standardandpoors.com/spf/pdf/index/tr.pdf
I went to VanGuard.com to compare the S&P and Russell data with their indexes. Here are the indexes I found with at least 10 years of time: S&P500, Created 1976, 12.1% Large Cap Growth, 1992, 9.36% Large Cap Value, 1992, 11.69% Total Stock Market, 1992, 10.57% Small Cap Index, 1960, 11.09% Extended Market (Smal to mid caps), 1987 11.98% Total International Stock Index, 1996, 6.36% UH-OH!