Small-cap stocks have experienced a major run-up recently…
The Russell 2000, which tracks 2,000 of the smallest companies in the U.S. stock market, has gained a jaw-dropping 26.96% in the past three months. During that same time period, the S&P 500 has only gained 13.9%.
That’s roughly half as much, folks!
And it has left many investors and traders wondering if these small-cap stocks to watch in 2021 have overstayed their welcome (and if it’s best to move on to another strategy) or if they should remain bullish on smaller stocks.
Well, my answer to that is simple…
Whenever the S&P 500 outperforms smaller stocks for more than one year, small-cap stocks statistically and historically tend to catch up and outdo the S&P 500 for the following two years.
This tells me that the rally we’re seeing in these small-cap stocks to watch for 2021 is only just getting started…
There’s even more upside potential when you consider all the various sectors like electric vehicles, 5G, pot stocks and other growth stocks that are now just reaching some level of maturity and growth.
And these companies have many years ahead of them before becoming the next Amazon or Netflix.
Yes! Believe it or not, both of those stocks were small caps at one point, too.
Which also tells me we have a golden opportunity with small-cap stocks right now. That’s why I’m giving away three small-cap stocks to watch in 2021 that should see more upside as time goes on.
And despite the runup, these small-cap stocks to watch in 2021 don’t seem to be overpriced based on fundamental values. In fact, they’re actually primed for more potential upside and momentum.
Check out today’s video to reveal the three small-cap stocks to watch in 2021 and let me know some of your favorites in the comments section below.
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P.S. From 1993 to 2021, you would have lost 10% of your money buying and holding the S&P 500 during the day…
Yet if you’d bought at the close and sold again right at the open, you could’ve seen an 812% increase on your investments.
Where did all the gains come from? Overnight moves.
And one former $700 million hedge fund trader just revealed how he’s exploiting these overnight moves on a handful of stocks every single day.