![\"\"](\"https:\/\/monocle.lu\/wp-content\/uploads\/2023\/07\/tbl.png\")
<\/p>\nIt's no secret: since the start of the year, the performance of the main US indices has been driven by a few big names. The S&P 500 \"market cap weighted*\" is at +20%, while its \"equal weighted*\" counterpart is at +10% (since 12\/31\/2019, they are at +50% and +40% respectively). For the Nasdaq, we are respectively at +45% and +26% in 2023 (and +87% and +57% since 2019). A clear disconnection takes place in 2023.<\/p>\n
<\/p>\n
The phenomenon is comparable between the S&P 500 and the Russell 2000, which includes small caps: +20% and +14% in 2023 (since 2019 +50% and +25% respectively). A first decoupling took place in November 2021, then a second in early 2023: the average performance gap since 2019 has risen from 10 points to over twenty.<\/p>\n
In other words, the big get bigger and the small get left behind. \"A tale of two markets, to quote Dickens.<\/p>\n
We can mourn... or rejoice. We'll take the second option. A market like this, where all the attention is given to a few names, necessarily creates opportunities. Of course, as always, you need to be cautious before committing yourself.<\/p>\n
With this in mind, we increased our exposure to Capri Holdings this week. Although there are some headwinds this year, we believe that the quality of its brands (Michael Kors, Versace and Jimmy Choo) will enable it to significantly improve its results over the medium term. Combined with the current low valuation, the result could be formidable.<\/p>\n
Graham and Dodd pointed to Horace in their 1934 Security Analysis: \"Many shall be restored that now are fallen and many shall fall that now are in honor\". We think that's still the case, and that we have a good place to fish.<\/p>\n
<\/p>\n
*Market cap weighted: the weight of each company depends on its market capitalization.<\/p>\n
*Equal weighted: each company has the same weight in the index<\/p>","protected":false},"excerpt":{"rendered":"
\u00c7a n\u2019a \u00e9chapp\u00e9 \u00e0 personne : depuis le d\u00e9but de l\u2019ann\u00e9e, la performance des principaux indices am\u00e9ricains est tir\u00e9e par quelques grands noms. Le S&P 500 \u00ab market…<\/p>","protected":false},"author":8,"featured_media":4163,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-le-billet-de-monocle"],"acf":[],"yoast_head":"\n