The market's going to be tough over the next number of quarters. But there are some incredible deals out there in both the Materials and Energy sectors. You're getting companies at single P/E multiples. I believe in Peak Oil, and when you can buy companies trading at half price sales, you want to buy them!
The small-cap cycles are typically 5 years in duration, and this is the 5Th year that small-caps have underperformed, which isn't surprising given the current credit crisis. In this environment, to succeed, you have to not follow the Index, cut your losers, and keep your winners.
Over all, what's happening now is both Deflation in paper assets and Inflation in real assets. To use Eric Sprott's example: "The price of a house is going down, because you can't borrow the money to buy the damn house! Because nobody wants to issue that piece of paper, because paper's not worth what it used to be..." (Our lovely "dual _flationary" environment)
Remember to stick to your convictions. There are periods where the market doesn't embrace your ideas... Unfortunately you have to wait for the market. You can't change the market. Nor shall we chase the market...
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