History suggests there is still plenty left in small-cap story

There are plenty of people posing the question; what is the current outlook for small and micro-cap companies? I define these stocks as ones with a market cap under the $1bn market cap level, typically covered by the Russell 2000 Index. As an aside, I prefer to call them emerging growth rather than small cap. To answer the outlook for this asset class in the fourth quarter of 2005 and for 2006, we need to review history. Prior to the big bear market of 2000 to 2002, the last really major decline was 1973-1974. That period saw the end of the 'nifty fifty', large growth cap stocks that we...