Host: What is the importance of including an emphasis on value and small cap stocks?

David Marotta: Small cap stocks make more than large caps stocks and value does better then growth. So, we recommend emphasizing a little bit more small cap value moving your portfolio that way and not as much large cap growth. This will boost your returns and one way of illustrating it is to look at the Tech bubble that burst in 2000, 2001 and 2002. In 2000, when large cap growth lost 33%, small cap value actually continued to go up another 19%. The next year in 2001 large cap growth lost about 29%, small cap value continued to go up another 19%. So, even though the Tech Bubble started to burst in 2000 and 2001, in 2000 it was growth that went down and in 2001 both growth and large cap went down. It was until 2002 that small cap value went down and then that year large cap growth fell apart completely. It was down 33%. Small cap value only went down 8%. So, over that three years of dropping markets, large cap growth lost over 68% of it's value and small cap value actually gained 29%. So diversifying in those years into small and value ended up saving your portfolio, just like diversifying into foreign bonds and bonds and foreign stocks which didnt lose as much and hard assets stock which actually did great ended up diversifying your portfolio. So, you can limit your returns, losses simply by diversifying your portfolio among all the different categories and you can actually boost your returns by emphasizing more small and more value.