large caps

Why have large caps outperformed small caps?

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If we look at the return of the XFL (S&P/ASX 50) from 2 Jan 2023 to 11 June 2024 we can see the index returned 10.75%. If we compared the XSO (S&P/ASX Small Ords) with the same dates we only have a return of 6.85%.  We discuss the various factors which have contributed to the outperformance of large-cap stocks compared to small-cap stocks below: Stability and Resilience: Large-cap companies are often more stable and resilient during periods of economic uncertainty …

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When to buy large, mid or small-cap stocks

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Similarly to sector rotations, the timing of when to buy and sell small and mid-cap stocks can maximise an investor’s portfolio. The size of a company has a huge impact on the characteristics of the stock. Knowing the difference between these types of companies will assist the investor to select the stock which is the most suitable for their needs. Understanding how different market caps react to market sentiment will help the investor protect capital and increase returns. Large Caps …

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