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US small-cap rally sends valuations soaring

Price-earnings ratios of shares in the Russell 2000 Index are three times as high as for those in the S&P 500 Index, reports LU WANG

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 - PHOTO:REUTERS

[NEW YORK] IN ONE corner of the US equity market, investor enthusiasm is exceeding the frenzy of the Internet bubble. Small-cap shares tracked by the Russell 2000 Index have rallied for seven straight quarters, the longest stretch ever, sending valuations 26 per cent above levels at the height