America 2.0 ETF: Smaller Stocks = BIGGER Gains
It’s my small-stock secret…
These tiny innovators are igniting the Super Bull Market — and beating the S&P 500 Index!
Now, I have one America 2.0 exchange-traded fund (ETF) you can buy today to see the rewards of this boom.
BUT … if you want massive, incredible, phenomenal returns, you have to go even smaller. (See the proof in this chart.)
This is a great sign that the Super Bull Market is in full swing.
And the small new companies are going to ultimately topple the big hitters on the S&P 500 — such as Apple Inc. and Amazon Inc.
The small America 2.0 stocks will radically reshape the world as we know it!
Watch my Bold Profits Daily to find out the ETF you can buy now or how to become a Super Bull today:
Index Beating S&P 500
There is an incredible opportunity unfolding in the stock market as we speak.
First, I want to tell you about something incredible we are doing that I hope you are registered for which is our Super Bull Summit. It’s directly related to this opportunity that’s unfolding. I rarely use charts in Bold Profits because I feel like sometimes charts are a little heavy duty.
In this chart there is a black line, a blue line and a green line. The black line is the S&P 500.
For those of you who are super sophisticated and know about the market, you know this is how people are judged. If you are a big hedge fund manager or a money manager, everyone wants to beat “the market.”
The market is this S&P 500 which is made up of the 500 biggest stocks that trade in the United States on either the Nasdaq or New York Stock Exchange (NYSE).
The S&P 500 is filled with stocks you probably know and have heard of. It has Apple, Google, Facebook, Amazon, Tesla hopefully in the future. However, Tesla is for whatever reason not yet in the S&P 500.
Then the blue line is the S&P 500 equal weighted. Many people think of the market and they think, “What is this thing?”
The market is just a reference to the price movement of 500 companies that trade in the United States. Equal weighted means they take the same amount of money and invest it into each company.
That gives you a slightly different result than if you put money into each company based on its stock market value. Stock market value is also referred to as market capitalization.
Apple for example has a $2 trillion market capitalization. Other companies like Amazon also have very high market capitalizations.
If you are invested in the equivalent of the black line in the chart, you own more of the bigger companies. However, if you are invested in a fund that owns these companies in an equal amount, then if smaller companies among these 500 go up, now you get a bigger benefit.
You will see on this chart that since March 24, which is the bottom of the crash that happened this year, the smaller companies are actually leading.
The best way to measure that is from an index called the Russell 2000. It has all these small companies packed in together. This index is actually beating the S&P 500 by nearly 3% or so.
57% compared to 55% for the equal-weighted S&P 500 and about 54% for the S&P 500.
What is going on and why am I bringing this up?
I believe there is a big transition happening right now with our economy, our country and our markets. There are a lot of mature and near-mature companies, including Apple in my judgment, that are starting to fade away.
Some of these companies are very clearly fading away. If you have been tracking industries like retail, you know companies like Sears, JC Penney and Macy’s have been struggling for a long period of time. There’s been a lot of bankruptcies and a lot of problems on that side of the business.
Equally, if you are following companies like Tesla you know that companies like GM, Ford and all the automakers from Japan and Europe, you can take all their stock market value and it is a little bit under what Tesla is valued at today.
That is a signal that there is this massive shift going on in the stock market between America 1.0 and America 2.0. While there are a number of larger America 2.0 companies like the ones, we feature in Profits Unlimited, some of the most innovative, phenomenal companies are much smaller than that.
These companies, I believe, are going to go through a period of sustained out-performance where you are going to see the prices of these companies start to jump and jump and keep jumping until they start to become bigger companies until they go into something like the S&P 500.
Many of these companies have no presence in the S&P 500. To get in on that you have to go and buy these stocks individually. You could buy an ETF, which is a basket of stocks. If you own a basket of stocks you can get some benefit, but you are never going to get the incredible, huge gains like the ones you might get by owning the stocks.
You can buy something like the Russell 2000 ETF in the chart above.. It has the ticker symbol IWM or you can get laser-focused concentrated exposure to incredible America 2.0 companies, innovation-based companies and the big megatrend companies.
These megatrend companies are exposed to all the trends of our time: Internet of Things, artificial intelligence, blockchain, new energy, precision medicine, emerging industries like space, exposures to new technologies that are radically reshaping the world like crypto and fintech.
For those to get in at the first inning and the platform level, you have to be in the stocks pretty early. From the results we are seeing in our services in this area, these companies are setting up to take off and soar.
Editor, Profits Unlimited