Now that Small Caps have rallied….
December 15, 2023 Leave a comment
When ‘no one is long small caps’, I published a study (Sept 1, ’23) designed as preparation to buy U.S. Small Caps.
The buying moment presented itself on Friday October 9, 2023.
Since then, the S&P Small Cap Index (and ETF) has risen 17.5%.
If you picked the exact low (seen 2 weeks later) then your return would look like 22%……
but we (at Karri Asset Advisors) are about catching the ‘fat part of the trade’.
2 months on, I am now preparing to sell.
Beyond various empirical analysis that I conduct, other reasons include that I subjectively dislike the price action. It’s not constructive and I think the small cap indices can ‘give up’ nearly all of those gains in the coming month(s).
December 15, 2023
by Rob Zdravevski
rob@karriasset.com.au
rob zdravevski's blog 