Rob Arnott, chairman of Research Affiliates, says small caps look more expensive than large caps on some measures and less so on others, but considers both to offer poor value.
According to the Center for Research in Security Prices, microcaps outperform small caps and large-caps stocks over time, although returns deviate by wider degrees.
Our research in the Almanac shows that most of the January effect, where small-cap stocks outperformed large caps, happened the last two weeks of December.