Sunday, September 27, 2015

Win Big By Thinking Small: 4 Reasons Why U.S. Small Cap Value Should Outperform

Read the article here

Abstract: In times of intense volatility and foreign instability, investors worry about where to put their money to work. Fear often dictates in situations like these, but - as I will attempt to explain in this article - rational analysis leads to the conclusion that the likely winners in today's market are domestic small capitalization value stocks. This view is based on the following four factors:

  1. Value is about to make a comeback in a big way.

  2. The United States economy is incredibly robust, and getting stronger.

  3. The tailwinds behind small capitalization value stocks of low interest rates and low commodity prices should continue to help accelerate top and bottom line growth, respectively.

  4. The significant headwinds holding back large multinationals like the strong dollar and a weaker Europe, Asia, and Emerging Market economies have little to no effect on domestic small cap value stocks.

Read the article here



Submitted September 27, 2015 at 09:40AM by adammjam http://ift.tt/1OAZpQ5

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