Calandra: Disaster ahead
Tom Calandra: Trading in and the price of small-cap stocks indicate the small investor, still heavily invested compared to earlier eras, are ready to head for the door. This is an interesting time, one when prices will wash out big time and, at some point -- I would never deign fit to say when before it happens (hindsight being 20/20 and all) -- at some point it will be a very good time to buy. But not now.
Posted by Mitch Ratcliffe at January 30, 2003 09:19 PM | TrackBack
How small stocks trade says a lot about investors' hopes and fears. During good times, small companies represent all that is hopeful about an expanding economy. During bad times, they do their Jekyll & Hyde act, becoming ravaged as disgusted investors flee the small-company landscape.
The gap between the two is now closing, but it's the way the spread between big and small is closing that most interests Peter Kendall at Elliott Wave International. The shifting gains and losses of the U.S. market's smallest stocks are pointing to a likely rush to the exits by individual investors, Kendall said Thursday.