Short Sellers Walk Away From U.S. Small-Caps After Drop: Options
Markets Ignore Low Profits on Climb to Record Highs
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The biggest drop in small-cap equity valuations since 2011 is luring investors back to shares that led the bull market over its first five years.
Price-earnings ratios for the Russell 2000 index have contracted from above 60 to about 43, the largest drop in four years, amid earnings that are poised to climb 10 times faster than the Standard & Poor’s 500 Index over the next 12 months.