Lessons from 2014
In my first commentary of 2014, the US market overview section led with the headline, “S&P 2014 in 2014?” Although my actual target was 2060, for the year, I continued to overweight the US over the international markets. Within the international space, I favoured an overweight in Japan, a neutral allocation in Europe and an underweight allocation in emerging markets. Looking at US asset classes, my preference throughout the year was to overweight large-cap stocks over small-cap stocks, and large-cap value over large-cap growth. Although large-cap values’ absolute performance has been strong year-to-date as of November 30, it has lagged largecap growth.