AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Byline: DAVID SAITO-CHUNG
Should you buy big-cap stocks or small-cap stocks?
Investors and pundits love to debate this question. A view of the IBD 100, however, shows that this kind of thinking may be a bit misguided.
IBD began offering a weekly analysis of chart action for each member of the IBD 100 on April 25. As the pie charts show, the biggest slice of top performers hailed from neither the small-cap nor large-cap arena.
Half of them were mid caps. The composition hasn't changed much since then.
A stock with a market value (share price times total shares outstanding) of $1 billion to under $10 billion is considered a mid cap. Those with a market value below $1 billion are typically small caps, while large caps usually have a market value north of $10 billion.
The IBD 100's composition seems to run parallel with the market's performance. Since Jan. 1, the mid-cap S&P 400 is up 8%, better than the 6.4% year-to-date gain for the small-cap S&P 600.