Small Cap Value and Emerging Markets Roar Back with a Vengeance
Posted February 8, 2012on:
Last year, while the S&P 500 was largely flat, small cap value and emerging markets were down significantly. No wonder some clients of mine got a bit edgy.
What a change one month has made! As of Feb. 5, these two asset classes have roared back with a vengeance. See the table below.
|2012 Year to Feb 5th||2011|
|DFA US Small Cap Value||12.74%||-9.74%|
|DFA Emerging Mkts Value||19.44%||-26.50%|
|DFA Intl Small Cap Value||12.74%||-19.41%|
The lesson here: when we see big losses like -19%, -26%, we can view them as a financial Armageddon or as a buying opportunity. The latter position is mentally much harder to take, but it almost always pays off.
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