Do Small Caps Outperform the Market?

[willoneau]

In the last recent bull asx100 easily beat asx300 which from memory has not reached its former high pre gst yet
There is a current move to relative safety with the big boys
People buy asx100 or even top ten as a bond replacement for safety in an uncertain world IMHO

Hi qldfrog, is that because everyone is chasing dividend type strategies, I listen to few talk about how great it is.

 

[qldfrog]

P

Hi qldfrog, is that because everyone is chasing dividend type strategies, I listen to few talk about how great it is.

Probably, yet is it better to lose on inflation for maybe a couple of years or get slammed by 20 or 49 % in the next crash
Shares are not bonds...

 

[Value Hunter]

I think the large number speccy stocks (over the long term) drags down the performance of the all ordinaries accumulation index. It would be interesting to see what the long-term performance of the index would be if you introduced a few simple quality filters such as all of the following:
-excluding any company which has negative operating cash flow in the most recent reporting period
-excluding any company which does not pay a dividend
-excluding any company with negative retained earnings
-excluding any company posting a statutory loss in the most recent reporting period

 

[willoneau]

Don't think many speccy stocks pay dividends so narrows it greatly.