They're so expensive that small-cap stocks look reasonable by comparison, despite their risk, Mr. Blitzer says. Of course, several obstacles could trip everybody up, he adds. Although the economic picture in the United States remains bright, the market is 20 percent overvalued, Blitzer reckons. That means small stocks as well as big ones. The recent spike in oil prices because of Iran-Iraq tensions bears watching.
Some analysts believe the market is on the verge of a downturn.
Michael Flament, an economist at Wright Investors' Service in Bridgeport, Conn., sees a 15 percent correction ahead. Others suspect the correction may have already come and gone. This summer, the Dow Jones Industrial Average slipped about 7 percent to about 7600 from its record high above 8200. This week the Dow was back over 8000. Strictly by the numbers, no.