Displaying items by tag: large caps

Large-cap growth funds have recently delivered strong returns, with an average gain of 16.77% over the past year and standout performances from Fidelity, Vanguard, and Loomis Sayles offerings. 

Fidelity Advisor New Insights and Contrafund, managed by veteran Will Danoff, ranked among the top five funds, with returns exceeding 18% annually over the past five years. Loomis Sayles Growth Fund posted the highest three- and five-year gains, driven by a disciplined process and long-term investment strategy. 

Vanguard’s Growth Index and Mega Cap Growth Index funds also performed well, offering low-cost, passive exposure to top-performing large-cap growth stocks. Despite their success, these funds come with risks like high concentration in mega-cap stocks and share class accessibility issues for individual investors. 

Finsum: As interest rates remain high that could provide a relative advantage to large caps over small caps. 

(New York)

The low rate environment has been hard for bond market income investors…see the full story on our partner Magnifi’s site.

The conventional wisdom in markets has always been that large caps hold up better in periods of volatility, and small caps outpace in returns when markets start to recover. The reality, however, is far different. If you take a look at a series of turbulent periods of the last few decades, you can see a clear trend: midcaps actually perform better. They suffer similar losses during periods of volatility, but actually recover faster than both “domestically-focused” small caps and “mature” large caps. In periods of high volatility, midcaps have fallen by 41% on average, slightly less than large caps at 42.93% and small caps at 45.05%. In periods of recovery, it has taken midcaps only 304 days to recover versus 544 for large caps, and 432 for small caps.

The data highlights the significant outperformance of midcaps versus their peers. So how can investors best commit capital to midcaps? Take a look at State Street’s SPDR S&P MIDCAP 400 ETF.

----------------------------
n.b. This is sponsored content and not FINSUM editorial.

Source: https://www.ssga.com/library-content/pdfs/etf/us/mid-caps-defy-conventional-wisdom.pdf

(New York)

Q1 Earnings are starting to roll in for many companies and this presents an opportunity…see the full story on our partner Magnifi’s site

(New York)

One of the big annual market traditions has begun: banks and their analysts put of their year-ahead forecasts. This year has seen a wide range of forecasts, but one thing is becoming apparent—analysts are bullish, and more so than usual. Jefferies has the most aggressive forecast, saying the S&P 500 will close 2021 at 4,250; it is at 3,662 now. Analysts are bullish because of the coming vaccine and central banks which will continue to be accommodative. However, Barclays adds a third consideration—that the economy is doing much better than anyone thought it would be at this point. According to Barclays “with central banks set to remain accommodative for several years, a likely drop in global trade tensions, and unappetizing fixed income returns, we remain overweight risk assets over core bonds”.

FINSUM: Yes valuations are high, but given the overall economic position the US is in (including the vaccine), it is hard not to be optimistic.