Seeking Alpha

Goldman: Small cap run is ending

  • Valuations are high, says David Kostin and team - the Russell 2000's (IWM) P/E ratio is up 25% this year and stands above the 10-year average both in absolute terms and relative to the S&P 500. At  the same time, EPS growth is set to slow from 11% this year to 8% in 2014.
  • The Russell 2000 has outperformed the S&P 500 by nearly 1000 basis points over the last year.
  • Has the catch-up already begun - small caps have lagged the broader market by 250 basis points over the past month.
  • Small cap ETFs: IWM, TZA, TNA, UWM, VB, IJR, SLY, RWJ, TWM, URTY, SCHA, RWM, SRTY, SAA, DWAS, VTWO, SBB, RSCO, JKJ, SDD, XSLV, FYX, VIOO, EWRS, TWOK, SMLV, PXSC
From other sites
Comments (1)
  • riotango07
    , contributor
    Comments (69) | Send Message
     
    Noise.
    13 Nov 2013, 01:33 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs