Beat Downtrend With Small Caps

What do you do when the economy is slowing down and large businesses appear to be over-valued? One way to try to beat the downtrend is to invest in smallcaps. This is not easy  and there are many arguments for, and against, small  cap investing. Small companies generally do not have much institutional coverage, nor is there large institutional stake in such concerns. This means a lack of information. Small businesses are also dependent on one or two individual promoters and a small number of personnel. Any incompetence, or dishonesty, on the part of promoters, or employees, can lead to a collapse.  This lack of information, and over-dependence on a few people, makes it hard to value small businesses with accuracy. There can be big price swings. There may be unpleasant surprises, if the management is unethical. Failure rates are high, since small businesses lack the...