High Valuations and High Compensation in the Russell 2000

We’d also like to note that, it is not healthy for our country to continue to overly reward companies that do not produce the critical things we all need. Food producers, agriculture, utilities, construction, chemicals, banking and other very basic and critical industries are almost demonized in favor of companies that produce far less critical output and services while employing very few people for their size. This is especially true in the U.S. If you are a company that employs many people in the U.S., watch out, you will likely be shunned by investors. Meanwhile, companies that outsource everything they can to other countries, including their taxable profits are valued highly and lauded for their corporate governance. It is not that they are actually better corporate citizens, they just happen to have a business model that saves them from having to get their hands dirty in the real world.