Ron. I wouldn't place any bets on the small caps here. This is a bubble, a mania, a once in a lifetime market event. For a good description on the formentation of a bubble, see this subject- Subject 20359
>>5. The base of the bubble narrows at the top. At first the best tulips go up, then all tulips go up, at then end a select few tulips go ballistic. Then all tulips crash together, usually there are one or two dead cat bounces.<<
Even if this is not a bubble, and just a tired bull market, history shows that the small caps will suffer as much as the rest when the bear arrives (I think he has arrived already). The final phase of a bull market is marked by a narrow advance in the indexes on the backs of blue chip and speculative stocks. This bull is begging for the sword.
We've got housewives daytrading internet stocks, 12 year old penny stock gurus, wide public participation in the form of mutual and index funds, TV networks dedicated to stocks, tow truck drivers buying islands, and that's just a start..
I don't need the pitbull -10 crash index to warn me to go cash. I'm already there. <g> Now where's my velcro suit?
Regards,
TW |
