Large-Cap Stocks Holding Up Better Than Small-Caps

The video discusses the valuation of small caps, highlighting their current trading at about two times sales. It contrasts small caps with large caps, noting a market divergence and a transition since 2014. The video explores the relevance of the price to sales metric, especially for new companies, and discusses the challenges of declining earnings and higher valuations. Historical data suggests potential for small caps, with a focus on the U.S. economy's strength.

What historical context is provided regarding valuation gaps and small caps?

What reasons are given for being bullish on small caps in the current market?