PeakTrader.com Forum Index PeakTrader.com
Economics, Portfolio Optimization, and Technical Analysis
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 
Log inFast Charts

Large and Small Caps

 
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Market Forecast
View previous topic :: View next topic  
Author Message
arthur
Guest





PostPosted: Fri Dec 31, 2004 6:17 pm    Post subject: Large and Small Caps Reply with quote

The S&P 100 to Russell 2000 ratio shows large cap stocks, in general, underperformed small cap stocks, in general, over the past six years. However, if the U.S. dollar continues to stay weak in 2005, then U.S. multinational firms, which are typically larger firms, should earn higher profits, from narrowing trade imbalances (both exports and imports) and favorable foreign exchange rates. Small cap stocks benefited from lower interest rates, which have a more powerful effect on smaller firms, and fewer operating restrictions, e.g. pensions, greater plant & equipment costs, large contracts, etc., which provided greater flexibility when downsizing. Consequently, larger caps, in general, may outperform smaller caps, in general, in 2005.

Back to top
Display posts from previous:   
Post new topic   Reply to topic     PeakTrader.com Forum Index -> Market Forecast All times are GMT - 8 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Powered by PeakTrader 2.0.8 © 2001, 2002