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So "there's absolutely no reason why small caps can't keep outperforming large caps," Mr. Stovall said.
If the same stocks keep outperforming, that strategy will be a good one.
ST expects to keep outperforming the industry, which is forecast this year to surpass 1999's 18percentt rise, according to the Dataquest research firm.
Much research has found that stock funds with the best performance over the trailing 6 to 12 months tend to keep outperforming for up to an additional year.
In addition, momentum stocks (those that have already risen in price) tend to keep outperforming in the short term.
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As a stock keeps outperforming the market, more and more investors "discover" it and jump on board -- propelling it even further ahead of the market and seducing still more buyers.
But a follow-up study five years later discovered that only eight of them had kept on outperforming the market.
So do the new winners keep on outperforming, or are their surges short-lived "junk rallies?" O'Shaughnessy's latest study provides a clue.
During the plummeting market of 2008, momentum was king; shares that were falling in value kept falling, while shares that had been outperforming tended to keep doing so.
Meanwhile Credit Suisse kept its outperform rating but cut its target price.
Both Credit Suisse and Macquarie kept their outperform ratings, although Credit Suisse clipped its price target from 430p to 420p.
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