Small Cap Valuations Getting Extended

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 |  Includes: IWM, VB, VBK
by: David I. Templeton, CFA
On a relative basis, small cap stocks are trading at near record levels from a valuation perspective since 1990. Click to enlarge:
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From HORAN Capital Advisors
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A part of the valuation difference is a result of the strong performance achieved by small cap stocks versus large cap stocks. As the below chart details, the 10-year return of the Russel 2000 small cap index has far outpaced the return of the S&P 500 index, 70.8% versus 6.7%, respectively. Click to enlarge:
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From The Blog of HORAN Capital Advisors
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