With the approach of the holiday season, holiday-related investment advice has become increasingly fashionable. Here is the latest: a claim of a ‘less well-known fact’ that large-cap stocks outperform small-cap stocks in December versus the ‘well-known fact’ that the reverse is true in January. The article then suggested a simple strategy to boost one’s portfolio: overweight large-cap stocks in December, then switch to small-cap stocks in January.
How much advantage can one obtain using this strategy? We decided to test it.
We used the SP600 Barra Value and SP600 Barra Growth indices as proxies for small-cap stocks (historical data is
Continue reading Do large cap stocks boost portfolio performance at year’s end?