Fascination with specific market action is a mainstream part of life in the investment business. I have written several pieces that touched on the stocks with over $5 billion in market cap that fell hard from 2021's elevated grace. That notorious universe includes 125 names that crashed 50% or more from their highs over the next twelve months. However, as the Federal Reserve moved closer to finishing its rate-hiking campaign, the market responded positively.
Even if we try to normalize the stats by using the median, neutralizing some of the effects of the megacap top names like Nvidia , Meta , AMD , and Salesforce the market caps are $17.9 billion for the winners and $8.7 billion for the losers. Why would small size be such a disadvantage over the past six months? The forward price-earnings of large cap stocks is now 17.7, compared to 13.1 times for mid-cap and 12.6 times for small cap stocks, according to findings from Credit Suisse.
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I think if the green energy stocks don't rebound, they'll be under capitalized for the growth we'll need. If the market understood what we face, it would be running wheel barrels of cash up to the corporate offices of those companies. No wonder doomers are everywhere now.