But far more people simply don't have the iron stomachs to tolerate the downswings. He compares himself to an investment coach whose objective is to keep his clients in the game. It hasn't been all downhill since 1996 for the emerging-growth funds. After their initial swoon, they bounced back nicely last summer. But then investors' rekindled affection for small growth stocks was snuffed out by worries about the Asian economic crisis.
Opinions are mixed on the near-term outlook for small, aggressive stocks.
On the plus side, small growth stocks are available at some pretty attractive prices these days. Mr. Pilgrm of PBHG sees a chance that investors will shift their attention to small growth stocks later this year. If promising small companies in technology and other businesses deliver solid earnings over the next quarter or two, he figures, the usual flurry of Wall Street investment conferences in the fall might produce renewed enthusiasm for these stocks. But Mr. Van Wagoner, for one, doesn't expect small, aggressive stocks to soar any time soon. And even though small-stock valuations are attractive, he doesn't expect many investors to abandon the big, safe stocks this far into an economic expansion.