I Haven't Seen Bargains This Good in 20 Years

This bear market is punishing everyone and everything. Growth. Value. Large caps. Small caps.

The stock market has tanked 21% since January. But small-cap growth has fared even worse, as you can see in the chart below. The Russell 2000 Growth Index has plummeted 31%.

There’s a good reason for this. Many small-cap growth companies are not generating profits. Even with all the COVID corporate stimulus, they’re burning through cash. Look at Oscar Health (OSCR) for example. This insurance “disruptor” has tumbled 85% since its March 2021 IPO. And after raising billions, it still doesn’t make money.

  • This whole situation reminds me of the dot-com bust.

If you’ve been investing for a while, you remember what happened. Investors put silly valuations on companies with “dot-com” in their names. Then the house of cards collapsed—the Nasdaq fell 78% from its peak in October 2000 to its low in September 2002.