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+--- Thread: Champion Mkt Cap Trivia (/showthread.php?tid=1695)
Champion Mkt Cap Trivia - Robandcindy2 - 09-30-2017
(Yes I'm bored on my "Stay-cation")
Playing around with our portfolio and contemplating our mix of Large, Mid and Small caps I did some sorting with David Fish's Champions Spreadsheet (Excel Spreadsheet if you don't have it). Here is the 8/31/2017 mix:
All CCC (Champion, Contender, Challenger):
Large Cap 33%
Mid Cap 34%
Small Cap 33%
Currently the 10 Year Note (TNX) is paying 2.326%. CCC caps that meet or exceed the TNX:
Large Cap 16%
Mid Cap 18%
Small Cap 15%
Further Breakdown
All CCC that exceed the TNX:
Large Cap
Champions 16.5%
Contenders 34.5%
Challengers 49%
Mid Cap
Champions 14.5%
Contenders 26.5%
Challengers 49%
Small Cap
Champions 8%
Contenders 23%
Challengers 69%
So what am I taking away from this exercise?
At one time M* had published a study that across all Caps a 40% Large, 30% Mid and 30% Small had the best risk-return profile. That study is no longer available online but i still use this ratio with our Growth stock/ETFs. Back when I read and tried to apply it to our DGI portfolio I found it very difficult especially in the Small Cap region.
As a layer of insurance I try to limit our DGI picks to Champions and Contenders as the last big crash was in September 2008. Companies that continued to raise their dividends during that crash would be represented on that list.
The CCC portfolio would then break down to approximately:
40% Large Cap Champions + Contenders beating the TNX
40% Mid Cap Champions + Contenders beating the TNX
20% Small Cap Champions + Contenders beating the TNX
I imagine that these numbers might swing slightly if you eliminated some high/low numbers. For example, some huge standard deviations which don't match other online sources-not sure why. Others have exorbitant yields (BBOX for example). Some on our board here shy away from the banking sector so I suppose you could run the numbers "less financials".
Just something to contemplate...
Have a terrific weekend.
RE: Champion Mkt Cap Trivia - Robandcindy2 - 09-30-2017
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