Should You Invest In Small and Mid Cap Stocks? Is Now the Time?

Small and mid cap stocks have underperformed large cap stocks for over a decade. Is now the time to increase your allocation?

Topics covered include:

• How big are small and mid cap stocks
• How have small and mid cap stocks performed relative to large cap stocks
• How have active small and mid cap managers performed relative to indexing options
• Are bigger IPOs contributing to small and mid cap stocks underperformance
• How expensive or cheap are small cap stocks relative to large cap
• What is the capital asset pricing model and how do academics use it to identify outperforming factors
• How value, momentum and quality drive small cap stock outperformance
• How to invest in small and mid cap stocks

Thanks to Policygenius for sponsoring the episode.

Show Notes

The Morningstar Active/Passive Barometer

Initial Public Offerings: Updated Statistics January 5, 2022, by Jay R. Ritter—Warrington College of Business, University of Florida

The Nexus of Anomalies-Stock Returns-Asset Pricing Models: The International Evidence by Rahul Roy and Shijin Santhakumar

The Cross-Section of Stock Returns before 1926 (And Beyond) by Guido Baltussen, Bart van Vliet, and Pim van Vliet

Factor Timing: Keep It Simple by Michael Aked—Research Affiliates

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