- The Russell 2000 (IWM) is trading for 49x earnings compared with a multiple of 39x at the height of the Internet bubble. The S&P 500 P/E ratio of 17.2x is within spitting distance of its 75-year average.
- The small cap gauge has returned an average of 30% per year since the March 2009 bottom vs. 25% for the S&P 500, but profits lately are not keeping up. In the last quarter, Russell 2000 profits climbed 6.8% vs. 8.6% for the S&P 500, and while S&P companies exceeded analyst estimates by 4.6%, Russell 2000 companies missed by 13%, according to Bloomberg.
- "Monetary policy action cannot be taken off the table as a response to the build-up of broad and sustained systemic risk," said Fed Governor Daniel Tarullo recently, sighting bubbly small caps as one thing being eyed at the central bank.
- ETFs: IWM, IJS, TZA, TNA, UWM, VB, IJR, SLY, EES, RWJ, VBR, VBK, URTY, SCHA, TWM, IWO, IWN, IJT, RWM, SRTY, SAA, DWAS, JKL, VTWO, SLYG, RZV, SLYV, VIOO, SDD, JKJ, RZG, RSCO, SBB, UKK, VTWG, VIOG, TILT, FYX, FNDA, VIOV, XSLV, FYT, SKK, JKK, PXSV, VTWV, EWRS, UVT, TWOK, IESM, SMLV, SJH, FYC, VLU, PXSC, PXSG
at CNBC.com (Nov 14, 2014)