I'd have to respectfully disagree there is tons of evidence that there will be a resurgence in the market, as evidenced by some of the games top money managers....Sy Jacobs for instance, guy who called the housing bubble had this to say to Barrons about his current strategy "We're long lots of micro-cap ways to play this, but they're too illiquid to mention here."
Here's a recent filing from another fund entering the micro world:
Nierenberg Investment Management is run by David Nierenberg, a former management consultant and venture capitalist. NIM is the general partner of The D3 Family Funds, a group of private investment partnerships.
Nierenberg has posted average annual returns of 20%+ over the last 10 year period.
"The D3 Family Funds are growth-at-the-right-price (GARP) investors in micro-cap stocks, which it defines as companies with equity market capitalizations up to one billion dollars.
D3 focuses on micro-caps for many reasons including "micro-caps remain an island of informational imperfection where insightful stock picking can produce sustained superior performance. This is possible because most micro-caps are not well followed by securities analysts, if at all. Trading volumes in, and investment banking for, micro-caps are not lucrative enough to command Wall Street’s attention. Therefore, a diligent micro-cap investor may develop superior insight and outperform the market."
Now of course these aren't exactly glowing reviews, but I believe the general sentiment for mid range traders is their high brow tactics should work swimmingly down here, and as more come to play with the sharks, the increased liquidity should beget more....keep in mind, this market tends to slow down heading into the summer anyway...knee jerk reactions to recent volume are largely unwarranted...I'll grant you that the market is worse than it's been in a while, but so is the overall American financial community...if this market was charted, you'd see we're at support, and are due for a large bounce, it will be gradual, but as more of the Me Generation aka Millenium babies enter into the world of investing, their instant gratification based culture will meld perfectly with the high volatility OTC market...within a few years liquidity in this market will be bullish, coupled with new SEC regulations making this market safer we could be in for a very nice period in this market's history...those who survive this drought and hone their skills in the current condition should be best suited to benefit from this OTC renaissance, I for one am not going to QUIT drilling 3 feet from gold...would you?(reference to R.U. Darby's story Chapter 1, "Think and Grow Rich" by Napoleon Hill")
AI
