More on the Small Cap Advantage

SYNOPSIS

Ho hum! More index all time highs and no volatility. The only problem is that equities are still trading in a narrow range in spite of the upward bias.

PTP… Our ProfiTrend Portfolio APAR (annualized price appreciation rate) fell just slightly to 105% last week. We’re still well ahead of the S&P/TSX Composite Index APAR at 37%; and the S&P 500 APAR at 35%. There were three additions to the PTP last week, and one position was closed.

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Last Week in the Indexes… On a one week basis, all indexes were up last week to varying degrees. On a trend basis the leaders continue to be the S&P/TSX Venture Index, S&P/TSX Small Cap Index and Nasdaq Composite Index.

PTA Perspective… More on the Small Cap Advantage
Several weeks ago we discussed the notion that large cap and small cap stocks can go in and out of favour from time to time; and one could build a simple investment strategy based on switching between a small cap ETF and a large cap ETF based on prevailing trends. This week we approach the topic from the perspective of seasonality. Brooke Thackray has discovered the best time frame of the year to be invested in small caps… and the worse time. We’ll take you through the numbers.

Sector Rotation Works!

SYNOPSIS

Things are still boring in the markets, but with a continuing upward bias. That’s enough to provide us with new index highs almost every day. Volatility remains almost nonexistent, but most people still don’t realize that low volatility is the case almost all the time now. Only the biz media tell you otherwise.

PTP… Our ProfiTrend Portfolio APAR (annualized price appreciation rate) rose to 109% last week. We’re still well ahead of the S&P/TSX Composite Index APAR at 30%; and the S&P 500 APAR at 25%. There were two additions to the PTP last week.

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Last Week in the Indexes… On a one week basis, we had five indexes achieve +1% to +2.5% gains. None of the indexes declined last week. The trend values still favour Canadian small cap and US Nasdaq stocks.

Seasonality… We’ve included yet another two new 60 second video clips from our primary source of seasonality data, Brooke Thackray. He discusses the outlook for the S&P 500 yet again and, more importantly, the seasonal opportunity in Energy stocks.

PTA Perspective… Sector Rotation Works!
We’ve always talked about a top-down approach to investing using our relative trend analysis™ (RTA) data, where sectors are the focus after you determine whether to invest in equities at all, and pick your geography. Then you either buy the best sector(s) via ETFs, or drill down to find the best performing stocks within the best trending sectors. This week we provide you with even more research results that prove that this is the only way to go!

What’s Your Cap Size?

SYNOPSIS

Things are getting a bit boring. There’s political and economic turmoil on a global scale, yet investors remain totally complacent. Stocks are mostly trading in a narrow range with a slight upward bias, and there is no volatility. Those obsessed with the possibility of losses may be happy, but this isn’t an environment for generating robust profits.

PTP… Our ProfiTrend Portfolio APAR (annualized price appreciation rate) rose to 95% last week. We’re still well ahead of the S&P/TSX Composite Index APAR at 17%; and the S&P 500 APAR at 19%. There were no trades in the PTP last week.

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Last Week in the Indexes… On a one week basis, most changes were positive, but fairly small. The DJI and the S&P/TSX Composite Index had small declines. Canada’s small caps and Nasdaq continue to lead the trend rankings.

Seasonality… We’ve included two new 60 second video clips from our primary source of seasonality data, Brooke Thackray. He discusses the outlook for the S&P 500 and the seasonal opportunity in Retail stocks.

PTA Perspective… What’s Your Cap Size?
Does size matter? Yes, it does, but possibly not in the manner you’re expecting! This week we walk you through the implications of company size for your investment decisions. There are times when you might seek the “safety” of large cap stocks, and other times (like now) when you’d be crazy not to load up on small caps.