Why you shouldn't overlook small caps in your portfolio

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Russell 2000 News

Market Domination,Paul Baiocchi,Small Caps

While the S&P 500 (^GSPC) has reached record highs, the Russell 2000 (^RUT) has lagged behind as small caps struggle to keep up with the broader market. SS&C...

) has lagged behind as small caps struggle to keep up with the broader market. SS&C ALPS Advisors chief ETF strategist Paul Baiocchi joins Market Domination to discuss why investors should be more bullish on small caps despite their underperformance.

"You have to go back to the end of the .com era to see any time when small caps, at least at a price level, have looked like this relative to large caps. Then you look at valuations and you look at the PE spread between large caps and small caps as defined by the Russell 2000 and S&P 500. And historically speaking, when you get that type of anomalous relative valuation, it does portend to potentially strong relative performance on a go-forward basis.

He believes there are strategies for investors to get into small caps without risking too much. He points to ALPS O'Shares US Small-Cap Quality Dividend ETF -- Steve Ballmer passed Bill Gates on Monday to become the sixth-richest person in the world, the first time the former chief executive officer of Microsoft Corp. has been wealthier than the company’s co-founder.

These top dividend-growth stocks now offer great yields. The post Don’t Ignore These 2 Dividend-Growth Stocks With 7% Yields appeared first on The Motley Fool Canada.The Great Recession ended 15 years ago. Buying these stocks back then would have been a brilliant move. The post 3 AI Stocks That Have Turned $25,000 Into $1 Million in 15 Years appeared first on The Motley Fool Canada.

Source: News Formal (newsformal.com)

Market Domination Paul Baiocchi Small Caps

 

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