Small Cap Stock Investment
Small-capitalization stocks soar coming out of recessions and bear markets and last year was no exception, with returns on smaller stocks outpacing those on larger ones. When you widen your analytical lens and scour for investment bargains among small and relatively unknown companies, you can tap into true profit gushers.
Small-cap stocks with huge upside potential , continue to sport attractive price-earnings multiples and to sell at a discount to their peers—all while offering some of the best earnings growth prospects within their respective industries. Acquisitions are not out of the question either, as the M&A market has snapped back to life.
The truth is, it’s hard to make. History shows that small-cap growth stocks can produce returns that far outpace what most people think is rational. Bear markets are brutal, no doubt about it. But when stocks recover, you have a great chance to make absolutely ridiculous profits -- if you own the right stocks at the right time.
Great investors knows to be greedy when others are fearful and fearful when others are greedy. Great Investors understands the importance of spotting fundamentally sound companies trading at bargain prices.