Small-Cap Companies are Hot Now, and Small-Cap Growth is Outpacing the DJIA
We have an exciting company report in a very hot sector coming tomorrow at market open
Good day everyone,
The DJIA has gained 17% this year and the NASDAQ has gained 21% this year. That trajectory has padded the portfolios of a lot of investors and the credit must go to the strong US economy.
If we look at the past three months, June-August, we might be able to see a trend happening. The DJIA gained 2% over that three-month period and the NASDAQ gained 12%. That fact could indicate the NASDAQ is on a more bullish run than the Dow and there are reasons for that.
I want to talk about small-cap companies and how they offer a better opportunity for gains in value. Oftentimes the blue chip companies, with massive market caps get stagnant, moving only as DJIA moves. Most investors and traders like a little volatility. One of the first lesson’s I learned about the stock market (from my father when I was 12) is that it’s hard to make money trading in a flat market.
Volatility in the stock market can be daunting, scary and cause many investors to pull back on their trading activity. But volatility in the market, or in an individual company’s stock price is the only way to reap the bigger rewards.
That is why we report on many companies that I think represent a “value” opportunity. Identifying an unusual or unwarranted drop in a company’s share price, absent adverse events, creates the volatility needed for bigger gains.
That is why our team dedicates all our time to presenting you with opportunities. Sometimes that opportunity is 5%, sometimes 20% and occasionally a home run. Our team focuses on producing reports that can give our members a satisfying gain year after year.
I want to update you on one of our favorite companies. The company has recently announced some exciting developments and we feel the current price indicates a near-term swing. The technology employed by this company has it lined up for mid to long term success, but we feel the first steps toward that success are happening right now.
When I see a company’s value drop and it has solid fundamentals and exciting technology, I see a play that can yield a near term gain. Companies that operate in huge market sectors, and this one does, only need a fraction of the market share to proclaim success and this company is on the cusp of that kind of progress.
Stay tuned and stay informed. We will release this report on Wednesday, September 1, 2021, at market open.
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