Jeffrey,
September, 1997 Worth Magazine:
Peter Lynch Column:
"Discretion is usually the better part of valor when it comes to
calling the market, and I do try to be discreet. So I'm not going
to tell you that I know when the change is coming. But I will say
that, when it does, I expect it to take one of three forms. The
least likely scenario is that we will have more of the same--huge
companies will continue to dominate. There is no historical basis
for believing that the gap that began to open up last May will
continue.
A somewhat more likely scenario, because you can never forget
that this kind of thing can happen, is that big-company stocks will
fall sharply and take the rest of the market with them. Believe
me, if a large-stock correction happens, small stocks will go down, too.
The third and, I think, most likely possibility is that large
companies will go sideways for a while and small companies will begin to close the gap. develops. You aren't trying to call the bottom for the small-cap market or for any company. You're looking for companies that will consistently earn money, because they'll be rewarded for it..."
Cary Chubin
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