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Small-Cap Investing: How to Play The Emerging Small-Cap Rally
Forget the grim news that Alcoa (NYSE: AA) is slashing costs and cutting 13% of its workforce. We all know times are tough. But the market’s a forward-looking beast. And right now, it’s doing exactly what I predicted on November 19. It’s favoring small caps over large caps.
In December the little guys put up big numbers – a 5.8% gain versus a mere 1.1% uptick for the large guys, based on the Russell 2000 and S&P 500 indexes.
Before I get to my favorite ways to screen and play this emerging small-cap rally, let me first address my critics.
My last column…
12Jan2009 | Investment U | 0 comments | ContinuedSmall-Cap Stocks: The Most Important Trend Headed into 2009
Yesterday we got confirmation that the U.S. economy contracted by 0.5% in the third quarter. And most economists expect the downturn to accelerate, with GDP checking in as low as negative 6% in the fourth quarter. Here’s why I’m not concerned…
A more important trend is emerging. Remember, on November 19 I told you to consider going big, by going small with small caps. Well, the markets didn’t leave much time for preparation.
In that short span, small caps jumped 6.38%, almost tripling the returns of large caps, based on the Russell 2000 and Russell 3000 indexes. Of course, it’s too early…
24Dec2008 | Money Morning | 0 comments | Continued
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