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Valuations May Hurt Small Caps, Despite Job Growth

TedTed
edited February 2015 in The Bullpen
FYI:
The good news from Friday's jobs report may already be reflected in the prices of the smallest U.S. stocks.

With nearly all of their revenue coming from the United States, the companies in the Russell 2000 .TOY should be the most obvious beneficiaries of a growing U.S. economy.

Yet fund managers and analysts warn that small-cap stocks already trade at valuations high above long-term averages, even after significantly lagging large-company shares in 2014. This could put a cap on further gains.
Regards,
Ted
http://www.reuters.com/assets/print?aid=USKBN0LA26920150207

Russell 2000: +0.13% YTD
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