An interesting perspective on what what happened with CUBE and the other small cap high techs.
cbs.marketwatch.com
Within the article...
"For several different reasons, I think growth stocks will lead us out of this
price correction," said Cedd Moses, chairman and chief investment officer
of Los Angeles-based Portfolio Advisory Services Llc. "We've had three
years of outperformance by the large-cap S&P 500. In the past, when
you've had big surges in the S&P 500, the next five years had seen
smaller-cap stocks dominate the market. The last time we saw this was in
the 1970's, which led to 25-percent-plus returns for the smaller-cap indexes
over the next five years.
"Typically, when money flows out of emerging market funds, it moves into
aggressive-growth funds," Moses continued. "Also, First Call expects 31
percent earnings growth for the small-cap Russell 2000 index in 1998 vs.
only 14 percent for the S&P 500. In addition, 44 percent of larger stocks
have some degree of exposure to Asia, whereas only 26 percent of small
stocks do. As well, valuations are down near 20-year lows for emerging
growth stocks relative to the S&P 500. And last year's capital gains tax cut
tends to favor small- and mid-cap growth stocks over the next several
years." |
