2007 Proves Underwhelming for Small Caps and Value Stocks
The underperformance of value stocks and smaller capitalization stocks relative to large-cap growth stocks continues.
That is reflected in the performance of the Model Shadow Stock Portfolio, which is up only 2.0% for most of 2007 (through November 30), compared to 6.1% for the market as a whole, as represented by the Vanguard 500 Index fund (see Figure 1).
However, the Model Shadow Stock Portfolio does continue to outperform both small- and micro-cap indexes (complete data are shown in Table 1). While it seems likely that the portfolio will extend its six-year run of positive returns, it may not match the return of the total stock market for 2007.
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