How to Compare a Mutual Fund to a Small Cap Value Fund

The growth companies have done pretty well lately right? They have been hot. Well they were not hot last year they fell a lot. It is interesting to look at a history of returns and understand what it was like to be in these two different funds. And here's the fascinating part. If you're in that other fund that has about a PE ratio of about nine times it means that you're paying nine dollars for every dollar of earnings. So those companies that are smaller and out of favor people are getting them pretty cheap as they should because they are not the top of the rung in terms of changing our world as we know it.