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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (3191)	1/1/2002 12:41:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 3536

Well, I'm not saying that big caps have "had it", but merely that they will have a tough time producing the revenues and earnings that the market might be expecting from them unless they have developed some new killer product. And the tremendous valuations many of these stocks previously held means that there exists just as tremendous a "supply" issue of long-term shareholders just looking to get flat, and get out. And that will take a money that is better deployed in companies with much smaller market caps. But innovation normally comes from smaller companies. And these smaller companies are generally bought out by the bigger companies who have a greater distribution presence and can take these their technologies to the "next level". That's why I like small caps. But I also believe that US banks will lead the way out of this recession as they use these current low rates to clean up their bad debt and strengthen their balance sheets. Hawk