Investors Are Often Blinded By Personal Opinions and Biases

Not really, JBG. The long-term stock market trends and cycles have changed little since 1999-2000. Investors, often blinded by their personal opinions and biases, tend to consistently ignore the message of the markets. The message from the small cap sector remains the same in 2010 as it was in 1932, 1939, 1999 and 2009. Those that read this message have profited from it. Those that did not tend to complain that their personal opinions and biases have not been realized. For example, a common interpretation of market action implies that many if not all market are manipulated. While market manipulation and operations do exist, they cannot alter the direction of the secular trends and cycles.

U.S. Small Cap Stocks Total Return Index (SCSTRI):


U.S. Small Cap Total Return Index (SCSTRI) to Gold Ratio:


U.S. Large Cap Stocks Total Return Index (LCSTRI) to U.S. Small Cap Total Return Index (SCSTRI) Ratio:


Happy Holidays,

Eric

Hi Eric,

I have followed your web site for quite a while and really enjoy it. In the past you have written about small cap stocks and how they have historically performed during economic environments (i.e. printing money) like we are now experiencing. Do you have any updates?

Thanks,

JGB