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When is small-cap value coming back?

Mike Garry and my company’s Yardley Wealth Management. We’re a fiduciary, fee-only financial planning and wealth management firm in Newtown, Pennsylvania. That’s in Bucks County.

Small-cap value. When is it coming back? I don’t know. But small-cap value compared to the other asset classes in the US and most of them abroad has returned more than all the others in a time in the years that we have good data, and that includes not performing better than other asset classes the last ten years. It has been outperformed by US large-cap by a good amount. Is that, do we think that large-cap will now forever yield more or return more than small-cap. Could happen? I don’t know. Usually, this time is different is a mistake in the investing world, and I also think that small-cap value is riskier, and relative to its earnings, it’s cheaper.

And when you make investments, usually when you pay less per expected earnings for anything, you buy an apartment building to rent out or some sort of a gas pipeline. Anything, you buy, is there any potential cheaper? That generally works out better. Not all the time. So I would not be surprised if that ten or twelve years of under-performance turns around, but I don’t know. Always interesting to see. Anyway, my name is Mike Garry. You want to talk about this? Please give us a call, (267) 573-1019 or reach out to us through the social media channel where you’re seeing this or our website and thanks.

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Michael Garry Yardley Wealth Management

Author Michael Garry Yardley Wealth Management

Michael Garry is a CERTIFIED FINANCIAL PLANNER™ practitioner and a NAPFA-registered Financial Advisor. He is a member of the National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA).

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