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Limtex, Aus, and all: There seem to be two distinct markets here. First, the small caps are of interest mainly to individual investors or smaller, specialized funds with not much money to invest. The second and larger market is for the average individual, just throwing money into mutual funds, combined with other fund money, all confined to stocks in the S&P 500, or occasionally to the high flying Internet stocks. Because smaller companies are monitored sparingly by analysts, and because there are fewer interested investors, the stocks tend to lag the rest of the market. But any discipline in investing will show that those who concentrate on stocks that are reasonably priced in terms of their book value, PE, etc., will do better, and will do so at much less downside risk. Art |
