Small cap in focus

I have been reading many commentaries or view that small cap would be in play for coming weeks. So far, the recovery in earning has not disappoint. The correction is also moderate. The big caps are mostly well priced for the growth. Naturally, the attention will shift to mid and small cap, where the valuation playing catch up.

Market move through cycles. When the recovery start to take place, blue chips will run first, and subsequently the mid and small cap. Because only when the economy is in more stable stage, the smaller company will experience the earning growth again. In the mid, small cap space, there are still many undervalued companies which offer low PE and higher dividend yield.

I hope it is time for the stocks in my portfolio to start performing.