Hickey and Walters Bespoke submit: Below we highlight a chart of world market cap since 2004 along with the percentage of world market cap that US stocks make up.  The current value of stocks worldwide is just over $54 trillion according to Bloomberg.  US market cap currently stands...
This report reviews and clusters the various forces that drive movements in property cap rates. A quadrant conceptual framework is developed to gauge the interplay of both property and capital market influences on cap rates. Based on this four quadrant methodology, the likely trajectory of cap rates is presented. The...
Hickey and Walters Bespoke submit: So called blue-chip stocks have struggled mightily over the last year.  The total loss in market cap from their 52-week highs for stocks in the S&P 100 (largest 100 S&P stocks by market cap) is now $2.5 trillion.  Below we highlight stocks in...
Hickey and Walters Bespoke submit: Recently we highlighted that the United States' market cap as a percentage of global market cap has been on the decline.  Below we provide a table of the numbers for 29 other countries.  As shown, US stocks still dominate world market cap by...
This research paper reviews the evidence on the small cap effect and discusses its implications for building better global portfolios. There is a size value premium in the market. Sponsors investing in global small caps can diversify their alpha sources and broaden out their opportunity set in the global arena....
This paper provides no support for the claim that active management of small-cap portfolios is more fruitful than it is for large-cap portfolios. As a result of higher management fees and greater transaction costs, the typical overall cost differential between large- and small-cap portfolios is more than 100 basis points...
Throughout much of the 1990s, the largest companies and stocks dominated the equity markets around the world. Large-cap companies, both in and outside the United States, set a record pace in global mergers and acquisitions in the race to capture market share and global scale. Smaller-cap stocks were largely ignored...
Stockerblog submits: It it amazing that there are dozens of companies paying over 10% yields. Whether they can keep up those rates or even keep paying any more dividends in the future is another story. Four of the following five stocks have market caps over $1 billion, and the...
Among the many tools used by investors to gauge the worth of an income property, one of the most popular is a capitalization rate, aka cap rate. But as it is typically used, it is probably the one most misused concept in the real estate investment business. While brokers, sellers...
A common approach in overall fund construction is to be neutral with respect to size and value effects. This article looks at the returns of small/large cap stocks and value/growth stocks in the U.S. and International markets. Given the systematic premiums that are associated with small cap and value stocks,...
Some investors believe real estate has become overpriced because cap rates seem numerically low when compared with historical rates. Cap rates do not, by themselves, signal an over- or under-priced market, or a cyclical or secular trend. One needs to look at the connections between the capital markets and the...
Felix Salmon submits: Brad DeLong reckons that the relative merits of carbon taxes and cap-and-trade "roughly offset each other". "To first order cap-and-trade and carbon taxes are the same," he says, but there are second- and third-order differences. Among the second-order differences are these, and you can see how...
Richard Dwyer submits: Few sectors have been as decimated as airline stocks.  In an era where Google (NASDAQ: GOOG) has a market cap of roughly $178 billion, many are surprised to learn that many airline stocks have market caps of under $5 billion.  Indeed, many well known names...
The article emphasizes that the pattern of global production likely becoming more efficient, reasons for moving to the world market portfolio include: Diversification, Potential return enhancement and Broader investment opportunity set. In this regard, the absence of non-U.S. mid and small cap stocks often represents one of the biggest gaps...
Dan Knight submits: Over the last year, the average SP500 stock is down about 14%, with the peak back in October. Historically during down markets, "growth" stocks tend to underperform "value", perhaps due to their greater market sensitivity beta or that value stocks are relatively cheaper in the first...
For a small-cap technology company, the key is to be focused. The ability to deliver shareholder value does not depend on having a star analyst write about the company or how many column inches one get in the financial press. Go after the money directly. The worst mistake one can...
Analysts and investors may debate the mechanics of NAV calculation, but many use it as a starting point for analyzing the relative value of REITs. In this article it is explained that equity market investors and analysts have developed a variety of measures to help them assess the valuations assigned...
This article states that whether large cap U.S. equity index funds really very different? In this article, three well known index funds: Vanguard Index 500, Schwab 1000, and Vanguard Total Stock Index are considered. As a reminder, the Vanguard Index 500 seeks to replicate the performance of the Standard &...
Thomas Engelbert submits: SmallCapReview's last focus Stock Cyberonics CYBX is up 45% since our introduction. In fact our four current focus stocks are up between 26% and 65% since their introduction, not too bad considering the current environment. Below find two small-cap stocks that we feel will outperform the...
While the economy continues to send mixed signals and the markets remain volatile, some Morgan Stanley economists are expressing some cautious optimism about the outlook for the economy. The following article excerpts the latest economic views of Morgan Stanley economists. There was a great deal of optimism about the anticipated...
