It's (Still) a Small (Cap) World

Monday, January 30, 2006 | 06:30 PM

I was just clicking around on WSJ On Line, when I came across a great new page of resources:
Markets Data Index. Tons of good stuff, charts, resources.

I randomly click on one page -- and found this chart on market capitalization: "Small caps, stocks with market capitalizations of less than $1.5 billion, offer investors a chance to outperform the broad market, but are prone to price swings."

Weekly Market Screen
click for larger chart:


Source: WSJ

In the Long Term Small-cap stocks vs. large-cap stocks in good market times and bad. One size usually dominates at any given time.


Weekly Market Screen
WSJ, January 29, 2006

Monday, January 30, 2006 | 06:30 PM | Permalink | Comments (4) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



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I have a question, and if it's not too much bother, perhaps you could answer it for me. I'm a non-econ, and I trust your judgement, as a regular reader (and big fan!) of this blog.

Bloomberg, quoted below, mentions that capital spending has underperformed in this recovery.

My question is, is globalization a factor in the underperformance of capital spending throughout this recovery? Have the resources which in previous recoveries were used for capital spending been directed to China (and other rapidly developing countries)?

Capital spending has consistently underperformed the fundamentals, including strong corporate cash flow and tax incentives, during the current expansion. And it's not apt to overcome those obstacles now, according to economists at Citigroup Inc.

``The sweet spot for robust business investment growth this cycle has passed,'' the economists write in the Jan. 6 edition of ``Comments on Credit.'' ``With the exception of periods of accelerating trend productivity growth, capital spending responds very powerfully (with a lag) to aggregate demand trends, especially consumer demand.''


Posted by: camille roy | Jan 30, 2006 6:38:49 PM

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