Q&A: Small-Cap Stocks

Hi Eddy,
I think that your article regarding the “weak case” for better returns small caps doesn’t make a lot of sense. If you or I got our legs amputated, we’d be a lot shorter too. But we don’t – nor can you exclude January as a return month. Last time I checked the calendar, it was still on there. 🙂


You’re right.
Although it’s not my article, it’s Mark Hulbert’s. He cites a finance professor who claims that the January returns for small-caps are illusionary. But if that’s true, there should be a corresponding correction in February. There isn’t. February is also an up month.
The January returns may be odd or abnormal, but they still count.

Posted by on February 24th, 2006 at 4:11 pm


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