I'm somewhat kidding. I see the Russel 2000 is indeed doing well. But in an era of sustained inflation highs don't mean a lot. And if and when it becomes trendy to invest in smaller stocks its likely that those investment dollars will saturate the market and the index will stagnate.
There is a reason Hedge funds command such huge fees to be in on them.
ryan foreman wrote
I agree. But that is just it. The numbers that Flagpole was projecting in 2011 are still lousy by most any historical measure. Of course what hasn't been discussed in this thread yet is that the stock market level are still lousy even if they do go up. Even if the Dow hits 12000 by the end of the year that is still bad. The S&P is even worst.
1. The stock market level is not lousy. Be careful with how you measure the stock market. I hope this link works:
This is a 27 year chart of the Value Line arithmetic average. This is an index based on 1,600 stocks, not just 30 huge ones (the Dow), or 500 huge ones (SP500). It shows that the stock market is at all time highs. All time highs. The trick is not to buy GE or MSFT, but to buy small stocks you've never heard of.
The point here is that using any of the big cap indices as a measurement of 'the stock market' shows very poor performance because of the aftermath of the 1990s bubble. Someday, INTC and MSFT will ride again - maybe in 2011. But don't think for a second that the last 10 years have been a bad time for stocks.