Are You Buying Small-caps?

JC Parets
May 8, 2023

It's now or never.

The Russell2000 Small-cap Index is back down near last Summer's lows.

If there was ever a time for buyers to step up, it's right now.

And funny enough, relative to the Large-cap S&P500 Index, the Russell2000 is back down to the 2020 lows.

Again, if there was ever a time for buyers to step in, now is the time:

We're back to a key level of interest for Small-caps on an absolute basis.

And we're back down to historic levels relative to Large-caps.

This chart above tells a very powerful story.

I'm a buyer down here.

If the Russell2000 is above last Summer's lows, I will be long the $IWM ETF.

I also think there will be plenty of opportunities this summer in small-cap stocks.

There are 2000 of them. If you can't find a few that do very well and outperform Large-caps this Summer, then I don't think you're looking hard enough.

Fortunately we're doing a lot of the work for you.

We'll keep pointing out our favorite opportunities and you're welcome to tag along for the ride.

Which Small-caps are on your radar?

Shoot them over.

Let's hear it*

I'll get back to you with some thoughts!

*Nothing under $1B market cap. Keep it classy.

 

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