The common belief is that large-cap stocks don’t perform very well because they are already big and they don’t grow at high rates. However, is this true? What is the large-cap effect (factor) trading strategy? In this article, we are going to see what the large-cap effect is, develop some trading and investment strategies, and…
Of the many classifications a stock can have, one of the most significant is relative to its size. It is well known in the market that small caps tend to perform better than large caps, something called the small-cap effect. However, how significant is the small-cap factor? In this article, we are going to explore…
Stocks can be classified into four factors: value, size, investment, and quality. It is well-known that value stocks perform well, and small caps tend to outperform large caps. However, what about the quality factor trading strategy? The quality factor can be described as investing in stocks of safe, profitable, growing, and well-managed companies. This sounds…
Today we will introduce you to a well-known stock market anomaly – the small-cap effect strategy. Small-cap stocks are one of the types/factors you can invest in and hold in your securities portfolio. Small-cap stocks differ from large- and mid-cap stocks in several ways and have advantages and disadvantages. If you want to invest in…
