Premium Paid for Small Caps Largest Since 1982

By on April 30, 2010

Leuthold Group’s James Floyd says that the premium investors are currently paying for small-cap stocks (those with caps of $300 million to $1.4 billion) vs. large-cap stocks (those with caps over $9 billion) is the biggest since his firm started tracking the data in late 1982.

Source: The Guru Investor
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2 Comments

  1. Anonymous

    April 30, 2010 at 3:47 pm

    Interesting. Why do you think that is?

  2. stocksystm

    May 1, 2010 at 3:43 am

    Low quality small caps were crushed in the bear market (much worse than high quality large cap stocks). They've come back with a vengeance and have attracted the momentum crowd.

    The small caps are probably near the end of this run and will likely languish in the months ahead.

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