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2 Small-Cap Trades for 2021’s Surge of Money

2 Small-Cap Trades for 2021’s Surge of Money

Small but mighty!

Right now, that’s what I’m seeing in the coming small-cap surge. These stocks are leading the massive wave of America 2.0 — and your Main Street bull market.

There are two incredible plays in particular that I’m excited about and you should be too!

By the end of the year into 2021, we’re going to see a surge of money push into America 2.0 stocks.

And I want you ahead of the tidal wave of profits.

These two small-cap trades have the potential for enormous success.

Plus, Amber is going to share an incredible bonus buy for those of you who want crazy-fast results. (We’re running on a 35 win streak with another rock-star recommendation coming tomorrow.)

See everything about theses amazing opportunities here:

2 Trades for Small Caps Big Surge

In our latest internal investment team call, Paul shared an investment forecast that plays directly into our Bold Profits’ America 2.0 vision.

It’s all about the coming surge in small-cap stocks.

If you’re unfamiliar with the various stock market capitalizations here’s a quick run-through:

First off, a stock’s market capitalization is defined as a publicly traded co.’s worth calculated by multiplying its shares outstanding (which are stock shares currently held by investors) by the current price per share.

Caps Definition

For example, Uber’s market capitalization a.k.a. Market Cap, as of this past Friday’s close, was valued at $64.7B.  To calculate this market cap just take the co.’s current shares outstanding of 1.75M shares and multiply by the current price of $36.98 which equals $64.7B.

There are 3 major types of stock’s market cap.

Stock Market Caps 2

For today our focus is on Small Caps.  So, just know this.  Small caps can be mighty stock plays.  They have a great potential of beating institutional investors through growth opportunities.  And though they can be more volatile and riskier investment plays, historically they outperform large-cap stocks.

As Paul said…

Paul Quote 1

Paul Quote 2

Paul Quote 3

This is what we call here at Bold Profits and Banyan Hill “Fat Tail” thinking.

Fat tails are what statisticians refer to as odd bulges on the extremities of bell-shaped curves.  These are rare events that are not widely discussed across major news. These fat tail events are usually underpriced, which means great potential for gains.

Fat Tail Curve

And Paul’s fat tail thinking is playing out in the following two Bloomberg charts.

Small Caps Chart

This first chart shows the Russell 2000, a major index that tracks approx. 2,000 smallest cap U.S. stocks are on pace for its best monthly performance since 2018.

Small Cap Geyser

This second chart shows how a cyclical tilt of the Russell 2000 could produce an earnings geyser going into 2021.  How does 227% Earnings Per Share growth sound? Pretty good for Mighty Small Cap stocks.

Lastly, this recent blog headline from BNP Paribas says it all.

Small Cap Headline

They show how U.S. small caps are at their cheapest in 17 years.

BNP Paribas Quote

So here are 2 ways to trade the upcoming America 2.0 small caps surge, plus a bonus for fast gains from America 2.0.

PRNT Lower Third

We talk about replenishment, re-inventorying, and reshoring of U.S. manufacturing. One of the upcoming ways to invest in this trend is with 3D Printing stocks.

We here at Bold Profits see 3D printing as having one of the biggest impacts on today’s industrial economy.

As Paul sees it, 3D printing represents the leading edge of the way America 2.0 will show itself in the real economy.

As people go to buy houses, they’ll need more pipes, furniture, bathtubs. Whether it be the objects themselves or the small parts that make them, that’s going to have to come into the world of America 2.0.

The most direct manifestation of that is 3D printing.  To buy into this market consider investing in the 3D Printing ETF ticker, PRNT.  PRNT is a 3D Printing ETF that follows a number of small-cap 3D printing stocks.

Small vs. Big Chart

As this chart shows since the March Low PRNT has outperformed major indices like the Nasdaq, S&P, and Dow.

VBK Lower Third

Second, buy into the Vanguard Small-Cap Growth ETF, ticker VBK.

The VBK ETF tracks stocks that chase future growth and is filled with next-generation stock market leaders.

VBK can get you into an assortment of next-gen leader small-cap stocks at the ground level.

Small vs. Big Chart 2

As this chart also shows VBK is also outperforming the major indices since the March 23 low.



Paul Mampilly

Paul Mampilly

Editor, Profits Unlimited

P.S. Tomorrow I’m sending out an urgent trade recommendation to my Rapid Profit Trader readers. You see, I believe this bull market is just getting started. For the past two and a half years, readers of my Rapid Profit Trader research service have seen a winning trade almost every single week, on average. That’s over 120 winning trades out of 209 recommendations. But I think we can break our own records and find you even more wins in America 2.0! Starting with tomorrow’s trade. See all the details here before midnight EDT tonight.

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