Small-caps Did Great Last Year

JC Parets
January 17, 2022

Some people think that Small-cap stocks underperformed last year.

But those are probably the ones left holding the bag in small-cap growth stocks.

You see, Small-cap Value stocks did great!

One for the record books, in fact.

Be careful which narrative you're following.

Just because you think the Nasdaq is the stock market. Just because you think everyone owns growth stocks. And just because you think US Growth stocks are the only investments people can or should make, doesn't mean it's true.

It means you still don't know the way the market works. The global markets, to be sure.

The laziest of participants will chalk up 2021 as a year where large-cap stocks were the drivers of market returns.

Some of the worst people on earth will even tell you that, "It was only 5 stocks that kept the market up for the year".

But that actually wasn't true at all.

Take a look at the S&P500 Equally-weighted Index compared to that Market-cap Weighted Index they're always referencing:

The equally-weighted version actually outperformed that cap-weighted index they'll tell you controlled the market returns.

It's hilarious.

And it's a good thing.

You want the narrative coming from basic cable tv stations and social media to be way off.

Good.

It's called Financial Darwinism.

For those of us who ignore narratives, don't bother with tv game show networks, and believe newspapers are best served for pet urine, we get to follow the truth.

Price is the only truth. Price is fact.

The rest is garbage.

Who Kim Kardashian is dating or which desperate housewife is mangling her face even worse that it was before, is all in the same category as financial "news".

I don't feel bad saying it because I know it's true.

If you're interested in what's actually happening, then good for you. That puts you way ahead of almost everyone else.

So if you're trying to earn money in your portfolio, then you've come to the right place.

We focus on facts.

We pride ourselves on it.

And this week, we just so happened to release our Q1 2022 Playbook to Profit.

Here's what you'll find in this 144 page report:

  • Stocks (International & U.S.)
  • U.S. Sectors & Industries
  • Market Breadth & Sentiment
  • Commodities
  • Currencies
  • Intermarket Analysis
  • Crypto Currencies
  • New Trade Ideas
  • Overall Strategy

Premium Members can download the PDF in full here.

I think you're really going to enjoy this one.

Let me know what you think!

- JC

 

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