Re: OT........Small cap vs S&P
Very interesting chart, upelan. Thanks. Deep stuff, deep dive there on the right.
We have been told over the past five or six years that stock price appreciation is primarily tied up in a handful of stocks. I think it was a Bloomberg slide last Thursday that said five stocks account for 71% of the Nasdaq YTD rise. Barton, in last week's re-post on this board alludes to the same concentration of fluffed PEs among the big cap, high growth stocks.
Taking another view of the chart, as the ratio rose above 1.0 during the heat-up of the housing fiasco ... it is also intriguing to me that the market favored small caps (coming out of the nefarious fiasco that nearly took down global financing). The market was saved by US/EU creative bail-outs, which ramifications IMO are yet to be fully understood.
Disturbing to me that big banks are now participating in support of unregulated, hack-bait crypto currencies which, ... it is almost a rhyming verse to the obscurity in understanding by buyers of sliced/diced housing bonds.
Yada - yada. Does this chart suggest that small caps with solid fundamentals might be a safe haven? All the best.