December 14, 2007 at 2:00 pm by Tom Lydon
Which asset classes and similar exchange traded funds (ETFs) fared well for 2007? Matthew D. McCall for Seeking Alpha gives us his take based on the nine categories of market capitalization and growth versus value. He keeps his research to the domestic markets.
For 2007, growth outperformed value and the mid-caps pulled ahead. With market volatility, and a falling stock market, growth tends to be where investors gravitate. Growth stocks tend to continue their revenue and earning growth.
In the past few years, small-caps have outperformed large-caps, but it looks as though mid-caps outperformed them all this year. McCall calculates that mid-caps returned 11% versus large-caps 6.9% and small-caps 2.7%.
What’s in store for 2008? Will large-caps finally make a come-back? Will market volatility continue and growth outperform value? It’s not easy to predict what will happen, but keeping an eye on the trends and having an exit and entry strategy in place will certainly help find the areas that are trending upward and get out of those that are trending downward.
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