Money is flowing to where the relative value is. Now the reverse is happening. Investors are buying these stocks because they are attractively priced and they have been the better performers over the last two years. So relative value is back. It is a sane, rational market.
Value is competitive with growth.
Growth at a reasonable price makes more sense than growth at any price. Generally, stocks of companies that have made money are going up while stocks of companies that have lost money have gone down. Of course, past performance is not a guarantee of future results. We believe our firm's research oriented approach will be rewarded in the current environment and will continue to seek attractively priced stocks and companies that are doing well. As money continues to move into the small-cap sector, we look for continuing improvement in our portfolios.