I was curious to see how the major indices or supposedly bellweathers hold up against small caps in the past 10 years (well almost). And I'm surprised to see that the RUT outperformed to the upside the most. Unfortunately, I can't get data more than 10+ years so I don't know how it stacked up over the years. I suppose if you're looking to buy and hold for a retirement account, and too lazy to pick individual stocks, going for the Russell small caps seems like the way to go. What a terrible decade for the US stock market so far...
If Obama takes Office and enacts retributive taxation against all types of American Business with his "spread the wealth" lingo they are going to take an extremely severe beat down. :eek:
Small caps during a deflationary period of credit contraction?? Absolutely not. during times of contraction, bigger companies have the money and brands to preserve their market share. This is where smaller companies lose out.
Yeah, you're absolutely right. Polpolik, you'll have to wait until we get to the other side of this financial mess before you can start bargain shopping amongst the small-caps ... give it a while.
My personal belief is that the central banks of the industrialized world will reinflate and deal with inflation rather than let the world go into deflation. Whether they're successful or not remains to be seen but I suppose if you turn on the printing press long enough, they could very well be successful.