C
Cut-Throat
Guest
A lot of people have been saying that the market is overpriced and they may or may not be correct. With this in mind, I am constructing a portfolio plan and hope to be full invested within a year.
Here is a thought that occured to me. Historically the asset class of Small Cap Value stocks have outperformed any other US asset class. It would seem to me that investing in this asset class is almost 'safe' or 'safer' than the other asset classes during a rising and expensive stock market, because of the depressed prices that exist in this asset class. To me it looks like there may be less downside risk because stocks in this class have already been 'beaten up'.
Am I somewhat correct on this line of reasoning, or would these beat up stocks take even more of a pounding during a bear market? Granted, I know that to expect a higher return there has to be more risk on average for this asset class. Anybody ever heard anything on this topic? Thanks
Here is a thought that occured to me. Historically the asset class of Small Cap Value stocks have outperformed any other US asset class. It would seem to me that investing in this asset class is almost 'safe' or 'safer' than the other asset classes during a rising and expensive stock market, because of the depressed prices that exist in this asset class. To me it looks like there may be less downside risk because stocks in this class have already been 'beaten up'.
Am I somewhat correct on this line of reasoning, or would these beat up stocks take even more of a pounding during a bear market? Granted, I know that to expect a higher return there has to be more risk on average for this asset class. Anybody ever heard anything on this topic? Thanks