All the funds are valued for extremely high growth going forward yet we are in a borderline recession, if not already.
Small caps generally maintain higher PEs for the simple reason that they tend to be more profitable, percentage-wise, than large caps. That said, in a bear market, they also fall farther. To date, most economists view our economy to be bullish albeit sluggish...which, as you know, has also been my view. Those that currently see the US as being in a recession/depression have tended to be the permabears.
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Posted by: sarah_oz@yahoo.com
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