The Meb Faber Show - Better Investing cover image

Christine Wang, Bridgeway – “Room To Run” with US Small-Cap Value Stocks? (The Best Investment Writing Volume 6)

The Meb Faber Show - Better Investing

CHAPTER

Small Cap Value Stocks - Room to Run

The Russell 2000 value index lagged the S&P 500 index of large US companies by roughly double digits four years in a row from 2017 to 2020. Bridgeway's analysis indicates that the size factor, less so the value factor, has indeed made up tremendous ground over the last year. However, based on our analysis of relative book to market valuations through the end of March 2021, prices of small Cap Value Stocks would have to rise another 43% relative to the broader US market to get back to median historical levels.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner