Friday, March 26, 2010

History Says Small-Cap Rally May Be Ending


We're of the belief that by the end of the year large cap, dividend-paying stocks will be the best performers for the year.

Large cap stocks lagged the rally last year, and their relative valuation looks very attractive. Moreover, as investors look for dividend yield (as opposed to leaving cash in money market funds yielding 0%), stocks of large companies will become much more sought-after.

This article from the Financial Advisor magazine supports our view.

History Says Small-Cap Rally May Be Ending