On a relative basis, small cap stock stocks are trading at near record levels from a valuation perspective since 1990.
|From HORAN Capital Advisors|
Source: Fidelity, pg. 29 (PDF)
A part of the valuation difference is a result of the strong performance achieved by small cap stocks versus large cap stocks. As the below chart details, the 10-year return of the Russel 2000 small cap index has far outpaced the return of the S&P 500 index, 70.8% versus 6.7%, respectively.
|From The Blog of HORAN Capital Advisors|