Concern with small caps

Discussion in 'Economics' started by RGLD, Jul 24, 2019.

  1. RGLD

    RGLD

    Is this a real recovery from Q42018? The large cap stocks are reaching new highs with S&P leading. However, the Russell 2000 is suffering and has not recovered from 2018... Any thoughts on where this is going and if this spread is ever going to close?

    Do you see this as another "transfer" of wealth from small to large but on a company wide level?

    It's nice to know Apple hasn't fully recovered yet...
     
    murray t turtle likes this.
  2. dozu888

    dozu888

    https://www.wsj.com/market-data/stocks/peyields

    stay away from small caps! way over valued compared to other indexes.... not to mention the p/e shananigan they were doing with removing negative earnings.. terrible.

    small/micros used to have an edge in growth.... but nowadays the name of the game is market share... burn cash to grab them.. also big size has resources to utilize the most cutting edge technologies... also big size can have the most optimal global structure to capture low taxes and low labor cost.

    so... conventional wisdom is the SPY... nothing wrong there... but historically the NDX (hence QQQ) outperforms significantly.... therefore QQQ/XLK is no brainer.
     
    murray t turtle likes this.
  3. Nobert

    Nobert

    This reply is 80% out off the main topic :)
    (if we got FAANG in mind)


    Lots of interesting data :

     
    Last edited: Jul 24, 2019
  4. RGLD

    RGLD

    This is just another example of the transfer of wealth from poor to rich!

    Small cap stocks lost their edge and the Large caps are gaining. The only small cap stock that is doing well is AMD. Flawed Capitalism!!!
     
  5. dozu888

    dozu888

    what? the biggest game changer is probably technology.... so just go QQQ/XLK no brainer.

    small cap is not the same as 'poor' lol.... what are you... socialist fag lol
     
    Overnight likes this.
  6. Overnight

    Overnight

    I agree.
     
  7. d08

    d08

    AMD is small cap?! 36B cap.
     
    Nobert likes this.