BeaconEquity.com announces the publication of an article covering the author’s prediction that history will repeat itself where small-caps are concerned, comparing the 1970’s economic period to today.
Investors can view all of the investment articles for free by visiting: http://www.beaconequity.com/m
In the article the author writes:
“Yes, it’s the long-awaited time to sing the small-cap song. And it’s sure to be a hit, too, if history is any guide. Mark Twain once wrote, “History doesn’t repeat itself; but it does rhyme.” So we can’t offer the precise timing and duration of the next super bull in small caps, but we can tell you from where the next top-40 hit is coming.”
The author looks back to the 1970s as a similar inflationary period:
“Let’s take a look into the 1970s, post 1974 collapse of the U.S. economy. We choose this point because there’s little doubt of its similar inflationary lyrics being played by the Fed today. The United States had come off the gold standard (still off); monetary policy became aggressively loose under the watch of the infamous then-Fed Chairman Arthur Burns, who, by the way, told Nixon that when push comes to shove, reviving the economy should take precedence over maintaining the purchasing power of the U.S. currency; and back then, debt loads of large-cap stocks turned the corner of the double-edged sword, cutting into declining earnings like a hot knife into butter. At that time, investors fled hemorrhaging large caps into the more financially fit small caps, outperforming large caps by a margin of 2 to 1 from 1974 to 1980.”
To read the entire article visit http://www.beaconequity.com/m
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Source: BeaconEquity.com
Beacon Equity Research
Jeff Bishop, (469)-252-3505
press@beaconequity.com
