Investing in S&P 500 Stocks: Do Size and Value Still Matter

Title

Investing in S&P 500 Stocks: Do Size and Value Still Matter

Authors

Files

Description

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.

Publication Date

4-18-2018

Project Designation

Independent Research

Primary Advisor

Tony S Caporale, Robert D Dean

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium poster

Comments

Presenter: Margaret Eileen Schutter

Investing in S&P 500 Stocks: Do Size and Value Still Matter

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