The S&P 500 may be seriously outperforming the Russell 2000 in the past three months, but large caps remain the better relative value, said James Cahn, Chief Investment Officer of Wealth Enhancement Group. Cahn said mid caps are the most expensive of them all and are to be avoided. He is also bullish on emerging markets stocks, which he calls cheap compared to US stocks and with far better growth opportunities. Finally, Cahn said the healthcare and industrial sectors are significantly overpriced when compared to financials which he says are relatively inexpensive.

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