Archive for December, 2014

The December “Games”

December 31st, 2014

It has been estimated that about 90% of investment advisers were under performing their benchmarks going into the final month of the year. To make up lost ground, the smaller stocks would be easiest to push up in price. As evidenced in the following table, there was a perfect positive reverse correlation between December’s returns thru December 30 and index size.


December Games?
Index Mkt Cap-Median Return
S&P 500 (TR) $18.8B 0.79%
S&P 500 (TR) Top 10 $313B -0.57%
S&P 500(TR) Top 25 $251B 0.27%
Russell 1000 $8.1B 1.73%
Russell 2000 $.7B 3.56%