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To: Kirk © who wrote (14222)6/5/2000 1:51:00 PM
From: sea_biscuit  Read Replies (1) | Respond to of 15132
 
1966-80 Large Cap 6.71% Small Cap 14.09%

The price appreciation on the large cap (as represented by the S&P 500) during the above period was 2.55% annualized. That means the remaining 4.16% came from dividends. What are the dividend yields now as compared to 1966? It's a safe bet that they are a lot, lot smaller now than they were in 1966.

Also another point regarding the small-cap segment. There is a wide disparity between the returns of the growth and the value parts. Surprisingly, it was small-cap value that did better (in fact, the best of all) in the period 1966-1980 while small-cap growth just crashed and burned, with annualized returns in the low single digits.



To: Kirk © who wrote (14222)6/5/2000 1:58:00 PM
From: Demosthenes  Read Replies (1) | Respond to of 15132
 
Kirk,

<<Rolling 15-year periods:

1966-80 Large Cap 6.71% Small Cap 14.09%
1967-81 Large Cap 7.11% Small Cap 15.64%
1968-82 Large Cap 6.96% Small Cap 12.89%>>

Great info. Bob talked about the SP500 doing less than 2%/year between 66 and 82. Indexing was NOT the way to go during that time. Imagine that.

D