Same $ 10K invested
in small cap value stocks will see you retire with a million dollar portfolio (Ibbotson Associates study of asset class returns between Jan 1969 and Dec 2002)
It will be interesting to see how Historical Surviving Withdrawal Rates
for Small Cap Value stocks vary with the percentage earnings yield 100E10 / P of the S&P 500 index.
The Small Cap Value portfolio is a portfolio designed to systematically deliver return and risk characteristics
of small cap value stocks within the US equity market.
However, a study by Ibbotson Associates (now part of Morningstar) goes even further and shows that
small cap value stocks outperform all other asset classes on risk - adjusted basis.
When most investors think about different style boxes, whether it's large cap growth stocks or
small cap value stocks, they probably just take the label at face value.
Steve Alexander presents 5 Arguments for
Small Cap Value Stocks posted at MagicDiligence — Optimizing Joel Greenblatts Value Stock Strategy, saying, «Does your portfolio contain small cap value stocks?
One dollar invested in Large Cap and
Small Cap Value stocks would have grown into $ 13,937 and $ 137,223 respectively.
Switching stock allocations in accordance with the P / E10 of the S&P 500 index is highly beneficial with
Small Cap Value stocks.
A similar $ 10,000 investment in 1930 made in
small cap value stocks, on the other hand, would see your family enjoying a $ 707 Million portfolio in 2013
Small Cap Value Stocks are the undisputed leaders when it comes to the stock market returns, and it has been this way every since we started tracking stock market returns based on asset classes.