Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: Most years, the performances of the two indexes track each other fairly closely. However, since late March the Russell has drifted lower while the S&P 500 has moved higher. As a result, the Russell is down 4.2 percent for the year, while the S&P is up 4.1 percent, so small caps have some work to do if they are to outshine the big boys. Regards, Ted http://www.dallasnews.com/business/columnists/will-deener/20140803-are-small-cap-stocks-waving-a-warning-flag.ece
As Of 8/22/14: S&P 500 7.58% YTD Russell 2000 0.50% YTD
My thinking is they have just become too expensive and overbought. It is now time for earnings to catch up with their price. Let's hope that is possible. Seems many bought on analyst forward estimated earnings projections and it is now time ... Well, "Show me the Goods."
Simply stated ... and, by my thinking ... Investors became over enthused and Over Paid! And, now what we are seeing is the resulting price adjustment.
Seems my small cap funds that have respectful P/E Ratios seem to be doing just fine given the small cap investment climate. Perhaps the others that are struggling will find ballast and level off.
Comments
C: Let us hope not.
My thinking is they have just become too expensive and overbought. It is now time for earnings to catch up with their price. Let's hope that is possible. Seems many bought on analyst forward estimated earnings projections and it is now time ... Well, "Show me the Goods."
Simply stated ... and, by my thinking ... Investors became over enthused and Over Paid! And, now what we are seeing is the resulting price adjustment.
Seems my small cap funds that have respectful P/E Ratios seem to be doing just fine given the small cap investment climate. Perhaps the others that are struggling will find ballast and level off.
Old_Skeet