Yarden reasearch showed some data from last few days that shows that s&p 600 small caps slashed their forward P/E from 28 to less than 12. S&P 600 had 12 forward P/E ratio only briefly in 2020 before absolute bullrun and in 2008 after start of housing crisis, it didnt crashed so low not event in dotcom crash. In the same time s&p 500 had forward P/E of 25ish and it declined only to 17 after this crash and is in levels that are still high when you look at last 20 years. Whe it comes to sector duversification s&p 600 doesnt lean so heavily on tech, and has higher stakes in energy, consumer staples, industrials, financials. Which I bielive are sectors that will stand still in upcoming year. Am I not seeing something? Please give me some bear case for s&p 600 in 5 years. I kbow that in time of recession small caps have it tought. But how lower can it go relative to s&p 500? I would realy love to see other comparison of fundamental between small caps and large caps but frankly I have no idea where to find those data.
Submitted May 13, 2022 at 12:36AM by medBrain https://ift.tt/Ce5YhaH