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Big bets are being placed on small cap stocks. For one, according to analysts at Jefferies, small-cap stocks are starting to outperform. “As the year rolls along, small-cap earnings are set to broaden, accelerate, and play a game of catch-up with large,” said the firm, as quoted by CNBC. Two, billionaire Stanley Druckenmiller revealed a substantial bullish position in small-cap stocks recently. According to CNBC, he bought $664 million worth of call options on the iShares Russell 2000 ETF (SYM: IWM). “Now could be a good time to consider US small caps. Contrary to a broad academic consensus that small-cap stocks tend to outperform large caps, small caps have trailed large caps for an extended period, which suggests they could rebound. Valuations are compelling, too. In terms of price/earnings, small-cap valuations are low relative to their own history and large caps.” |
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Porter & Co
Porter Stansberry’s 2024 Election Prediction
In this new documentary, legendary economist Porter Stansberry lays out exactly what’s going on in the 2024 election and why this could be America’s Last Election.
Click here to get all the details
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While you can always jump into individual small cap stocks, you can gain even better exposure with some of the top small cap ETFs, including: ETF: iShares Core S&P Small-Cap ETF (SYM: IJR) We can also look at the iShares Core S&P Small-Cap ETF (SYM: IJR). With an expense ratio of 0.06%, the ETF is diversified with small cap stocks, such as Abercrombie & Fitch, Fabrinet, SM Energy, and Ensign Group to names a few top ones. Since bottoming out at around $88, the ETF I now up to $108.62. But with a good deal of interest coming back for small caps, the IJR ETF could test higher highs. Zacks Experts share 5 stocks Set to Supercharge Your Portfolio FREE. Found this helpful? Share it with others. Written by Dylan Jovine |
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