Friday, June 8, 2007

Large-cap stocks to outperform as economy slows

(Reuters) - Whether it's this week's turn higher in market interest rates, a harbinger of possibly higher inflation ahead, or expectations of slowing corporate earnings growth, investors sense a shift to large-cap stocks may be in order.




Small-cap stocks have outperformed the broad U.S. market after the technology bubble burst in 2000, and mid-caps have outperformed so far this year. But with the economy slowing, and higher growth more likely abroad, the traditional sweet spot at this point in the economic cycle is large caps.


Read more at Reuters.com Hot Stocks News

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