SMALL CAPS AT ALL TIME HIGH

The Russell 2000 small cap index is well over its all time high. I figure the NASDAQ will reach an all time high again in about 9 years.

The S&P 500 all time high is about $1525. It is currently around 1200 and should reach an all time high in about 3 years.

The most recent figures show that net investment flows into the USA dropped while the import trade deficit was higher than expected. The inflows were not down but rather that Americans are jumping on international investments. In fact, mutual fund data show that the public is buying small cap funds and international funds.

The crowd always turns out to be wrong. Buy the S&P. Good old solid American stocks will do well in the coming months.