{"id":1506,"date":"2020-01-17T13:06:37","date_gmt":"2020-01-17T21:06:37","guid":{"rendered":"https:\/\/smallcapdiscoveries.com\/?p=1506"},"modified":"2022-01-11T13:08:53","modified_gmt":"2022-01-11T21:08:53","slug":"no-ones-saying-it-but-we-will-its-a-micro-cap-bull-market-will-canadian-micro-cap-stocks-rebound","status":"publish","type":"post","link":"https:\/\/smallcapdiscoveries.com\/articles\/no-ones-saying-it-but-we-will-its-a-micro-cap-bull-market-will-canadian-micro-cap-stocks-rebound\/","title":{"rendered":"No one’s saying it, but we will: it\u2019s a micro-cap bull-market. Will Canadian micro-cap stocks rebound?"},"content":{"rendered":"
If you\u2019re a professional money manager or an investor, markets have provided staggering opportunities to create wealth with almost all markets melting higher.<\/p>\n
Last year in 2019, the S&P 500 was up more than 30%, and just about every investor in large caps made money. With the influx of ETFs, it\u2019s been relatively cheap and easy for investors to participate in the market. Investment demand for ETF products has helped push the valuations of the largest companies by market capitalization to a point where low-growth, mature companies are trading at high multiples. Look at\u00a0McDonald\u2019s<\/a>\u00a0(MCD \u2013 NYSE) which currently trades at a price to earnings ratio of 27.<\/p>\n Meanwhile, Silicon Valley has also been thriving, and the abundance of funds in venture capital and private equity has propelled private company valuations to the point where venture capital firms are selling companies to each other at ever-increasing valuations, much like the game of hot potato. Some of the \u201cunicorns\u201d have been floated to the public via IPO\u2019s at stratospheric valuations.<\/p>\n And of course, with no shortage of headlines, there is real estate: property prices have been steadily climbing to unprecedented highs over the last decade, fuelled by cheap debt and falling interest rates.<\/p>\n Almost every asset class has seen a protracted move to near historically high valuation multiples.<\/p>\n Here\u2019s a look at what the Dow Jones Index has done over the last 10 years:<\/p>\n