Friday, May 05, 2006
I recently discovered an interesting article about small cap stocks and their returns relative to large cap stocks over at Moneychimp.com. The article also includes an online calculator that allows one to enter a range of years between 1927 and 2005 and view the annualized returns for small cap and large cap growth and value stocks. The calculator also showns nominal and inflation-adjusted returns. As I have previously written, small cap value stocks trounce large cap growth stocks over time and this article provides further evidence of the disparity in returns.