MFMS - Why Your 2020 Resolution Should Be to Buy More Small-Cap Stocks
It's not necessarily their intent, but when most investors begin their hunt for a new stock pick, it starts and ends with a large-cap name (a stock with a market capitalization of $10 billion to $200 billion). They're simply easier to find, to the point where investors often just stumble across one they like thanks to the financial media.
The new year, though, is a particularly appropriate time to make a point of seeking out small-cap stocks (those with $300 million to $2 billion in market cap) to add to your portfolio. As a group, these companies are relatively undervalued compared with their large-cap counterparts, and the stage may be set for a renewal of the market leadership that small caps are known for.
Image source: Getty Images