Ghost of Igloi wrote:
Seattle,
Ok TNA from low last week and HSGFX from the high same week if you wish until year end . The whole point is small caps have the weakest fundamentals. So if fundamentals beat momentum I win, if not I lose, it really is that simple.
Igy
Igy, it is not that simple.
You want to reduce the whole, big, free market system called the stock market into a simple equation in which the valuations based on historical norms are not only the most important determinant of stock performance, they are the only determinant of stock performance.
And i dare say you do this to your own detriment.
There are other market dynamics in effect here and they have significant impacts. Market forces like quantitative easing, rising interest rates, rate of implementing the rising interest rates, tax cut impacts, the midterm elections, perception of the outcomes of midterm elections, Brexit outcomes, and stock buy-back implementation, etc, which will skew valuations all over the map, and perhaps indefinitely as long as they are in play.
Really, of those listed, midterms and interest rates probably call the tune for the near future.
Best of luck to you. But for those investors who could fathom the importance of the factors listed above, they understood that for those very reasons, it is 'different this time', and that is why. For the last few years, it's played in their favor. But the future capability of those factors to sustain market gains is what's in question going forward.