Small Cap Stocks - Are the Valuations Still Too High?

Small cap stocks are not only selling at extraordinarily low absolute multiples with a multiple in the order of 11 and a half times on the Russell 2000, it's selling at a 30 year low relative to large cap stocks. The issue we believe with tech is three C's: capital, competition, and what I would call complacency. They've had it so good for so long, they've been able to pursue growth at any cost,. And that complacency is coming home to roost.