Santa Claus Is Bringing a Small-Cap Rally
It’s that time of year again.
Every time you head into a store, Christmas songs are on at full blast. And each shopper grows a little more desperate.
Two weeks until Christmas — and both children and traders are hoping for a visit from Santa Claus.
A so-called “Santa Claus rally” typically happens in the last two weeks of December through the first few days of the new year.
There’s a lot of thought about what causes it.
It could be people investing holiday bonuses. Or maybe it’s due to pessimistic intuitional investors going on vacation, leaving the market to optimistic retail traders.
Regardless, a rally could mean good things for the stock market. Especially for small caps.
Small-cap companies have been hit hard over the past year. Volatility over the Federal Reserve, new COVID-19 variants and inflation worries pounded them again and again.
But that could soon change.
Co-CEO and Chief Investment Officer Gerard O’Reilly of Dimensional Fund Advisors just hinted as much.
As CNBC reports, his fund is telling clients to “maintain a long-term view and consider tilting more toward small-cap and value stocks.”
Sounds like O’Reilly reads Winning Investor Daily!
After all, in his prediction article last week, Steve Fernandez had the same recommendation…
Other than crypto, small-cap growth stocks have the most upside.
The Russell 2000 Growth Index should see 280% earnings growth over the next 12 months.
Despite the strong forecast, the index is only up 14% over the past year.
This means the stocks have some catching up to do.
After a slow 2021, I expect money to flood into small-cap growth stocks, sending the index 30% higher in 2022.
So, if you’re interested in hopping aboard the small-cap train in 2022, we suggest you check out Ian King’s New Era Fortunes service.
With an exclusive “pre-IPO” portfolio, you’ll get Ian’s full details on which positions you should buy now.
For more information, click here.
And to catch up on this week’s Winning Investor Daily articles, keep reading below.
A Little Bit of Everything …
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Blockchain has applications that go beyond the world of cryptos. And it’s perfect for the Internet of Things.
Jay Goldberg took advantage of the online Black Friday sales to get great deals on smart home devices. Here’s what he discovered.
Here’s why Steve Fernandez likes each of these three tech ETFs going forward into 2022 and beyond.
The Winning Investor Daily Team