DIS - Market Outlook: Avoid Small Cap Growth
The market remains near its all-time high, but economic earnings continue to decline. This disconnect, in addition to the continued risk of an escalating trade war and projections for slower GDP growth over the next two years, make this the riskiest market we've seen in many years. Investors need diligence more than ever to help them avoid stocks with misleading growth.
On the other hand, Figure 1 shows how much more expensive - and risky - the market truly is. Economic book value (EBV) - the no-growth growth value for the market