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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (6386)	3/21/1999 11:36:00 AM
From: jeffbas	Respond to of 78512

I saw both the Oberweis and McCamant features. But note that there are two ways to correct a disparity in valuation. Late last summer and early fall we saw a less pleasant way, which was not at all kind to the smaller companies, despite their cheaper valuations at that time. The very best scenario that I can imagine is that the large cap stocks back-and-fill for an extended period of time, while the decent small ones catch up. For example, the DOW drops to 9500, while small stocks drop little; then the DOW rallies to 10,000 again while small stocks rally smartly; then repeat again until enough people get tired of big stock underperformance that real money goes into small stocks and they get equally overvalued; then everything sells off big time. But I think this is not a high probability scenario.