As small caps have underperformed for the better part of a decade, Bill Baruch shares his thoughts on the asset class and whether smaller firms might start catching up to megacap tech.

Transcript:

Is there a road ahead to justify the multiple that it currently trades at?

I’m not suggesting there isn’t, but I want to hear from you whether there is or not. Apple’s not an Amazon from a decade ago, of course. I mean, it’s a behemoth, it’s the largest company in the world right now, but yeah, I think when you see the movement that we had in the market and the flows that came out of the market, so this is less about Revenue. I think these gains this year, the flows that are coming back in, apple is going to move, it’s going to, it’s 100% going to be something that’s going to be a leader, but again, I don’t think their revenue growth, the trajectory of the broad Revenue growth may demand the growth, the gain that it’s had this year. But to that point, I think people are focusing on their next Generation, the virtual reality, focusing on the services, and I think that Services, I mean everybody talks about it, but I think that is a real ballast to what’s driving the stock forward. PE of 30, um, well above the 10-year history.