Silicon Investor (SI) -- The First Internet Community

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 : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (11142)	12/10/1998 6:02:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

<historical study shows that smallcaps NEED inflation to perform well> Max, that analyst needs to scrutinize her data a little more. Smallcaps feed off the bigger fish. A good illustration is the recent IBM/ATT workforce swap. Assuming the swap takes place, the small businesses that sub-contract from IBM and ATT will be strongly impacted. Then there's the service industries that cater to the individuals affected by this move. In short, big business creates opportunities for the small businesses to thrive. Getting back to citing inflation as the root of a smallcap rally, it may be that economic expansion has historically resulted in inflationary pressures in the US. At this time, our economy has been experiencing economic expansion without inflation. The million dollar question is wether that expansion will continue. My bet is that it will, and I'm sticking with the small caps. They'll outperform the Dow in the short term from here as well as throughout 1999.