Bigger is Better
Igor Manukhov - May 19, 2023
Large companies continue to outperform smaller companies on both sides of the border.
Larger companies continue to outperform smaller companies. Below are relative strength lines comparing small US companies to the S&P500 (Black line) as well as small Canadian companies to the TSX (Red line). Both are trending down steadily. I aim to focus funds on relatively strong components, these charts would suggest that larger companies continue to be more promising at the moment. The key with relative strength is to continue to monitor it on a regular basis to spot a change in trend. There will come a time when small companies start to outperform. That would be the time to start accumulating them.