Small caps in general haven't had the best returns in the past few years.
I think you're right about the fear/greed cycle. I also think that cycles can last much longer than we think or would like.
Personally, I haven't made massive adjustments, but I have tried to focus more on shareholder return. This way, I just need management to keep doing the right things, I don't need the market to recognize it.
I really liked this article.
So true, yet you see people jumping from one strategy to another all the time.
Thanks Sam! It’s so tempting to jump to the strategy that seems to be working at the moment. There’s 2 fears at work I think:
1. That we’re missing out on all the gains of the hot strategy
2. That our strategy no longer works and we don’t yet realize it
As a value investor that last one has been on my mind. Small cap value hasn't had it's best returns the past years.
I'm always looking for arguments on what has changed compared to the past that is permanent.
But I always come back to nothing that trumps the cycle of fear and greed.
That I think is easier for dividend investord, you can always look at the dividends and rest assured that it's still working
Small caps in general haven't had the best returns in the past few years.
I think you're right about the fear/greed cycle. I also think that cycles can last much longer than we think or would like.
Personally, I haven't made massive adjustments, but I have tried to focus more on shareholder return. This way, I just need management to keep doing the right things, I don't need the market to recognize it.