View from the Observation Deck 

1. Today's blog post is intended to expose potential opportunities within the growth and value styles of investing, as well as by market capitalization (market cap).
2. At any given time, the equities markets are likely being led up or down by one of the three market cap classifications. Often this leadership role can be held for a multi-year period.
3. From 1995-1999, large-cap stocks outperformed their mid- and small-cap counterparts by a sizable margin. From 2000-2012, mid- and small-caps outperformed large-caps by an even bigger margin.
4. Since the end of 2012 through 8/6, however, the S&P 500, S&P MidCap 400 Index and the S&P SmallCap 600 Index posted similar cumulative total returns of 39.2%, 37.4% and 38.8%, respectively.
5. Over that same time period, the S&P 500 Growth, S&P 500 Value, S&P MidCap 400 Growth, S&P MidCap 400 Value, S&P SmallCap 600 Growth and S&P 600 SmallCap Value indices posted cumulative total returns of 40.0%, 38.3%, 33.5%, 41.4%, 37.6% and 39.9%, respectively. 
6. While the performance figures currently indicate there is no clear leader since the end of 2012, we encourage investors to spend some time analyzing the figures in the chart.

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. There can be no assurance that any of the projections cited will occur. The S&P 500, S&P MidCap 400 and S&P SmallCap 600 style indices are capitalization-weighted.

To Download a PDF of this post, please click here.