Margaret Eileen Schutter
Download Project (219 KB)
Empirical research by financial economists show that small cap stocks outperform large cap stocks and value stocks outperform growth stocks over long periods of time (20 years or more). In this study, I extend the previous research by examining returns to portfolios based on size and value but over a much shorter time period, 2009 – 2016, to determine if the traditional outperformance patterns still hold. The 2009 – 2016 period is important because it includes the market rebound from the 2008 recession and has all the appearances of a long run bull market. It is also impacted by one of the most aggressive monetary easing policies in U.S. history. The universe of stocks is the S&P 500. Portfolios are rebalanced yearly.
Tony S. Caporale, Robert D. Dean
Primary Advisor's Department
Economics and Finance
Stander Symposium project
"Investing in S&P 500 Stocks: Do Size and Value Still Matter" (2018). Stander Symposium Projects. 1126.