Common Cents

by | Oct 23, 2020 | WWC WorthWhile Reading

Last Week…


… The only equity asset class that wasn’t down was Commodities – GASP!



And bonds benevolently bubbled blithely up, with exception of Foreign Bonds.


And that’s all we’ll say about the ups and downs.  Of particular interest to us this week was the long-term, 10-15 year trailing return. Most investors understand that LONG-TERM, if you hang on in the good and bad times, an asset can expect to earn on AVERAGE 8-10% over a long-term period. This week we noted the 10-year trailing for U.S. equities were all withing that 8-10% range, except U.S. Small Value.  In the 15-year trailing, Large Growth, Tech, Health Care, Mid Growth and Small Growth were all well above 10%.


It’s almost like nothing happened earlier this year for growth companies. And it further illustrates just where the bomb landed earlier this year – value companies with Small Value being dead center of impact. Large, Mid and Small Value companies remain down YTD, but Small Companies are down the most – over 24% YTD. Their trailing return is 6.5% in 10 years and 5.95% at 15.  We took a look back at March numbers, and it was dismal. You think 24% YTD return is not good, but look how far it has bounced back. In March Small value was down over 46%.


Though COVID has had a major impact on small businesses as many of us are well aware, American ingenuity – the economic engine of the globe, remains strong and thriving. A devasting blow has been taken. But this will not be the end of small businesses per se′, for diversified investors in their accounts. In fact, exceptionally savvy entrepreneurs have adapted, identified new opportunities, been able to rebrand, develop new products and move forward amidst this otherwise tragic crisis.


Have a great weekend!


Indexes are listed in respective order to their reference above: DJ Industrial Average TR USD, S&P 500 TR, DJ US TSM Large Cap Growth TR USD, NASDAQ 100, Technology NTTR TR USD, DJ US Health Care TR USD, DJ US TSM Large Cap Value TR USD, DJ US TSM Mid Cap Growth TR USD, DJ US TSM Mid Cap Value TR USD, DJ US TSM Small Cap Growth TR USD, DJ US TSM Small Cap Value TR USD, FTSE NAREIT All Equity REITs TR, DJ Gbl Ex US Select REIT TR USD, Bloomberg Commodity TR USD, MSCI EAFE NR USD, MSCI EAFE Growth NR USD, MSCI EAFE Value NR USD, MSCI EAFE Small Cap NR USD, MSCI EM NR USD, BBgBarc US Corporate High Yield TR USD, FTSE WGBI NonUSD USD, JPM EMBI Plus TR USD, BBgBarc US Govt 1-3 Yr TR USD, ICE BoafAML 1-3Y US Corp TR USD, BBgBarc Intermediate Treasury TR USD, BBgBarc Interm Corp TR, BBgBarc US Treasury US TIPS TR USD. These materials have been prepared solely for informational purposes based upon data generally available to the public from sources believed to be reliable. All performance references are to benchmark indexes. Performance of specific funds will vary from respective benchmarks. Past performance is not an assurance of future results. Each index cited is provided to illustrate market trends for various asset classes. It is not possible to invest directly in an index. Neither do Indexes reflect individual investor costs, e.g. trading, expense ratios & potential advisory fee.