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What Cliff Meant To Say Was: How can a Smallcap Allocation Go Horribly Right?

In a nutshell, valuations matter.  Good past performance tends to attract and avalanche of money which raises the valuation of said investment bucket which steals from future expected performance.

The chart says – good for us.

Noted is the duration of said “mean reversion.” It tends to be longer than one quarter.

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