Graham and Doddsville -- Value Investing In The New Era Message Board

STOCKTALK

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 : Graham and Doddsville -- Value Investing In The New Era

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Boyd Hinds who wrote (682)	8/29/1998 12:25:00 AM
From: Bob Rudd	Read Replies (2) of 1722

Mid 70's versus current. Inflation was a major driving force in the 70's not so today. Small caps often do relatively better in infaltionary times since they are often the marginal producers. During lean times they get table scraps, but when demand exceeds supply, these marginal players can earn excess profits that has greater impact due to small size. The relative underperformance today appears to be more driven by liquidity issues. The funds that are the defacto allocators of capital are concerned about roach motel affect of small caps [Can't get out in selloff] and since they are driven by quarterly performance, they tend to gravitate to the momentum issues - that's not small caps. The trend toward index funds, which are capitalization weighted - big get bigger, exacerbates this effect. All this IMO. Regards, Bob

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next