Hi Bonnie,
Thanks for that capitalization breakdown on the top 100.
I read somewhere -- can't recall where (might have been on gold-eagle) but it was about a year ago -- that theorized the reversal of fortunes of the US and Japanese economies was actually planned! Something to do with supporting the dollar and improving the US competitive position. The article went on the say that this plan was actually a cycle intended to be executed repeatedly, as needed. Perhaps someone else here can corroborate this and maybe come up with a link.
If this is to believed, then the yen-carry would reverse, though the EU could either siphon off a bit of the action and/or accelerate the apparent effects of the reversal.
Regarding small cap valuation, I don't doubt that many individual small-caps are at appealing valuations. However, as a group, aren't they about as overvalued as the larger-caps, at least in terms of earnings? Wasn't it just a few weeks ago that some stat (Barrons?) came up stating that, if the top few stocks were removed from the NASDAQ, the average P/E of the remaining thousands of issues was an astounding 60+, and not getting any better? I've been watching the earnings reports from the local companies (Minneapolis). I'm seeing an awful lot of negatives and parentheses in the earnings columns, even though revenues are often up year-over-year.
My take is that a bit of bottom fishing right here might be OK, on a case-by-case basis. But if the large caps are about to roll over, I think most small-caps aren't going up.
BWDIOYOAERKFS? |
