MarketWatch
If we’re long-term investors, what should we be buying?
The broad Russell 2000 small cap index (RUT) has already plunged 25% since its peak last November. “Small-caps are [in] the bottom 3% of their historical ‘relative’ valuation range versus the S&P 500, and small cap value stocks are in the first percentile,” Doug Ramsey, chief investment strategist at Leuthold Group, tells me. “On a price-to-earnings (PE) basis small-cap stocks remain ‘on sale’ in relation to large cap,” reports Will Nasgovitz, portfolio manager of Heartland Value Fund, a value-oriented stock fund.
