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"Our enthusiasm is clearly a notch below where we were at the beginning of the year," write...

"Our enthusiasm is clearly a notch below where we were at the beginning of the year," write Credit Suisse analysts, starting to see a bit of froth creep into small caps.  At 16.4x earnings, the Russell 2000 (IWM) "has admittedly lost its valuation appeal." For now, they're buyers on dips, but should the index near the 1,000 level, valuation pressure will really start to be felt.
Comments (3)
  • FWIW, 16.4x earnings is projected in a year. The current P/E is 33.
    Me thinks the estimates are frothy NOW.
    9 May 2013, 04:05 PM Reply Like
  • Agreed, earnings seem to be on the downtrend, not up, not steady.
    9 May 2013, 07:40 PM Reply Like
  • since when does earnings and valuation matter?
    14 May 2013, 03:35 PM Reply Like
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