In the course of a few months, investors have gone from panic-based selling, to aggressively bidding up low-quality companies.
The hard work of recovery will lead to some valuable questions about what went wrong.
The recent runup in valuations has reduced the margin for error in today’s markets.
This is only the third time in the past 35 years that the gap in valuations between large and small stocks has reached a level this extreme.
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