MarketFoolery: 05.13.2014
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 13 May 2014
⏱️ 14 minutes
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Summary
Today we talk about the recent correction small-cap companies are going through, Morgan steps all over one of Mark's joke's, what to do about the struggling retail sector, and how you should react to Coke’s newest deal with Keurig Green Mountain.
Transcript
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| 0:00.0 | It's Tuesday, May 13th. Welcome to Mark Foolery. I'm Mark Reith and joining me in |
| 0:07.0 | studio from Motley Fool 1, Morgan Housle, and also from Motley Fool 1, Jason Moser. |
| 0:11.8 | Gentlemen, how's it going? |
| 0:13.0 | Hello. |
| 0:14.0 | Howdy, howdy. Lots going on today, including big news for Curie and Coke, |
| 0:17.0 | but we begin with a look at small caps and their recent pullback. |
| 0:21.0 | Fellow Foolful Dan Kapplinger had a great article about this a few days ago and he pointed out that over the last two months the Russell 2000 has been through a nearly 10% correction |
| 0:29.8 | while the S&P 500 remains flat. Morgan. |
| 0:33.2 | This is something you've been watching. |
| 0:34.2 | What's going on with small caps? |
| 0:35.2 | And it's not just small caps. |
| 0:36.2 | It's growth companies too. |
| 0:38.2 | So we've seen a lot of big names, excuse me, Netflix, Amazon, 3D systems, a lot of these companies that have done extraordinarily |
| 0:44.7 | well over the past 18 months have really been hit hard over the last two months and it's really |
| 0:48.7 | freaking a lot of investors out. |
| 0:50.7 | And that's understandable. |
| 0:51.7 | I think what everyone needs to know who owns these companies is in any investment where you're going to get twice the returns, you're going to get twice the volatility. |
| 1:00.0 | You should absolutely expect that. That's a near certainty that's going to happen |
| 1:03.6 | and if you're owning these companies that double over the course of the year or |
| 1:06.1 | triple over a course of the year there's going to be a big pullback and a lot of |
| 1:09.8 | people accept that in theory when the stocks are going up they say, oh I'm okay with |
| 1:14.6 | volatility or they'll say, you know, if shares fell 50 percent, that'd be great, I'd buy more. |
... |
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