SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: James Clarke who wrote (6410)3/23/1999 9:55:00 AM
From: Freedom Fighter   of 78907
 
James,

I agree with your post on the small vs.large cap two tier valuation situation and historically what has happened when these big market tops finally break.

What to do has been on ongoing internal debate for me too.

I'd just like to add one small insight into small cap valuations. A reasonable case can be made that some if not a significant amount of the economic activity we see right now is in some part related to this mega bull market we have.

As examples:

Higher government tax receipts
Easier pension funding
Higher consumption

I also question what is going to happen to the income streams and financial positions of many smaller companies that appear cheap at present when/if we have a big one.

Wayne
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext