The reason people are investing in blue chips is the same as they always have - you can go to sleep at night and feel pretty good that you will still own something in the morning.
If you define small caps as 'cheap' then you can hardly say they don't have the potential for volatility.
If you define 'cheap' as companies that are underbought at the moment then logically yes, you should be making money once the market recognizes that it is mispriced.
If you define 'cheap' as the dollar value of a share, do you really not consider the total amount of shares in existence?
While everyone has the right to their own opinions, you don't offer much useful with yours in this instance.
