Barron’s: “The Market Snaps Its Losing Streak. Don’t Let Your Guard Down.”
By datatrekresearch in IN THE NEWS
Excerpt from Barron's quoting DataTrek's Nick Colas:
.... "Investors might want to curb their enthusiasm for small-caps, however. The sheer proliferation of private-equity and venture-capital firms in recent years has translated into more quality small-cap stocks being kept in private hands rather than debuting in public markets, notes DataTrek Research co-founder Nicholas Colas.
“That explains both their chronic underperformance and lower price return correlations to large-cap stocks, which do not suffer from the same phenomenon,” he writes. “Our view is that U.S. small-caps are now ‘trades’—a place to occasionally put capital, usually at the bottom of an economic/market cycle—rather than productive long-term investments"....
Full article here in Barron's.
