WSJ.com: Big Worries for Small Caps

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From wsj.com, May 2, 2011:

With so much hand-wringing going on, MarketBeat dropped a line to Peter Ricchiuti, a professor at Tulane University’s A.B. Freeman School of Business who has been tracking and trading small-cap companies for the past two decades. Are even some of small-cap’s biggest long-term boosters starting to get a bit hot under the collar? Uh, yes.

“I don’t know if it can continue,” Ricchiuti says, ticking off a list of worries. “The gap between pricing on large- and small-caps is, historically, very high. Another negative is that small caps tend to outperform large caps in the early stages of a recovery, and we’re starting to get some traction in the economy. That doesn’t bode well either.”

To read the entire article, visit http://blogs.wsj.com:

http://blogs.wsj.com/marketbeat/2011/05/02/big-worries-for-small-caps/

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