{"id":702,"date":"2023-02-13T09:02:52","date_gmt":"2023-02-13T14:02:52","guid":{"rendered":"https:\/\/embarrdowns.com\/invest-in-small-cap-stocks-for-a-big-return-in-2023\/"},"modified":"2023-02-13T09:02:53","modified_gmt":"2023-02-13T14:02:53","slug":"invest-in-small-cap-stocks-for-a-big-return-in-2023","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/invest-in-small-cap-stocks-for-a-big-return-in-2023\/","title":{"rendered":"Invest in Small-Cap Stocks for a Big Return in 2023"},"content":{"rendered":"

The start of 2023 has been an encouraging one for investors, with the S&P 500 rallying 8.5% in January \u2014 the strongest start to a year since 1987. Every major asset class finished January in the green, including cash, Bitcoin and investment-grade bonds.[0]<\/a><\/sup> The Nasdaq-100 saw an increase of 10.6%[0]<\/a><\/sup><\/p>\n

This positive trend could continue for the next 11 months or more and make investors who understand it a lot of money.[0]<\/a><\/sup> History shows that it\u2019s not common for the stock market to experience two consecutive down years \u2014 it\u2019s only happened twice since 1950 \u2014 and the S&P 500 returned 26.4% in 2009 despite spiking unemployment and terrible consumer confidence.[0]<\/a><\/sup><\/p>\n

Ariel Investments conducted a study that revealed that nearly 98% of the time, small-cap stocks outperform large-cap stocks when both are experiencing low prices and battered values. This makes sense, as it\u2019s an observed fact that small-cap companies as a group outperform large-cap stocks after market crashes.<\/p>\n

The US added 517,000 jobs in January, massively beating estimates and bringing the unemployment rate down to 3.4%.[1]<\/a><\/sup> This tight labor market could fuel wage increases, which ultimately contributes to the pace of inflation.[2]<\/a><\/sup><\/p>\n

Benzinga is tracking a handful of small-cap and micro-cap opportunities, including Sensate, a self-care startup that\u2019s grown revenue by 363% in a year even as larger-cap companies floundered.[3]<\/a><\/sup> With the optimism of the stock market in 2023 and the potential of small-cap companies, investors should treat the current situation as a buying opportunity.[4]<\/a><\/sup><\/p>\n

0. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks” Benzinga, 8 Feb. 2023, https:\/\/www.benzinga.com\/trading-ideas\/long-ideas\/23\/02\/30819221\/why-history-says-2023-will-be-a-banner-year-for-stocks<\/a><\/a><\/p>\n

1. <\/span>“The Stock Market Is Rallying. Will It Last?” Money, 8 Feb. 2023, https:\/\/money.com\/will-stock-market-rally-last\/<\/a><\/a><\/p>\n

2. <\/span>“Why the stock rally could fizzle out and burn bullish investors” Business Insider, 6 Feb. 2023, https:\/\/www.businessinsider.com\/investing-stock-rally-markets-fizzle-bullish-dalio-blackrock-bofa-street-2023-2<\/a><\/a><\/p>\n

3. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks By Benzinga” Investing.com UK, 8 Feb. 2023, https:\/\/uk.investing.com\/news\/stock-market-news\/why-history-says-2023-will-be-a-banner-year-for-stocks-2908244<\/a><\/a><\/p>\n

4. <\/span>“History Says the S&P 500 Could Soar in 2023 — 2 Perfect Stocks to Buy Before the Rebound” The Motley Fool, 10 Feb. 2023, https:\/\/www.fool.com\/investing\/2023\/02\/10\/sp-500-could-soar-in-2023-2-perfect-stocks-to-buy\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The start of 2023 has been an encouraging one for investors, with the S&P 500 rallying 8.5% in January \u2014 the strongest start to a year since 1987. Every major asset class finished January in the green, including cash, Bitcoin and investment-grade bonds.[0]<\/a><\/sup> The Nasdaq-100 saw an increase of 10.6%[0]<\/a><\/sup><\/p>\n

This positive trend could continue for the next 11 months or more and make investors who understand it a lot of money.[0]<\/a><\/sup> History shows that it\u2019s not common for the stock market to experience two consecutive down years \u2014 it\u2019s only happened twice since 1950 \u2014 and the S&P 500 returned 26.4% in 2009 despite spiking unemployment and terrible consumer confidence.[0]<\/a><\/sup><\/p>\n

Ariel Investments conducted a study that revealed that nearly 98% of the time, small-cap stocks outperform large-cap stocks when both are experiencing low prices and battered values. This makes sense, as it\u2019s an observed fact that small-cap companies as a group outperform large-cap stocks after market crashes.<\/p>\n

The US added 517,000 jobs in January, massively beating estimates and bringing the unemployment rate down to 3.4%.[1]<\/a><\/sup> This tight labor market could fuel wage increases, which ultimately contributes to the pace of inflation.[2]<\/a><\/sup><\/p>\n

Benzinga is tracking a handful of small-cap and micro-cap opportunities, including Sensate, a self-care startup that\u2019s grown revenue by 363% in a year even as larger-cap companies floundered.[3]<\/a><\/sup> With the optimism of the stock market in 2023 and the potential of small-cap companies, investors should treat the current situation as a buying opportunity.[4]<\/a><\/sup><\/p>\n

0. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks” Benzinga, 8 Feb. 2023, https:\/\/www.benzinga.com\/trading-ideas\/long-ideas\/23\/02\/30819221\/why-history-says-2023-will-be-a-banner-year-for-stocks<\/a><\/a><\/p>\n

1. <\/span>“The Stock Market Is Rallying. Will It Last?” Money, 8 Feb. 2023, https:\/\/money.com\/will-stock-market-rally-last\/<\/a><\/a><\/p>\n

2. <\/span>“Why the stock rally could fizzle out and burn bullish investors” Business Insider, 6 Feb. 2023, https:\/\/www.businessinsider.com\/investing-stock-rally-markets-fizzle-bullish-dalio-blackrock-bofa-street-2023-2<\/a><\/a><\/p>\n

3. <\/span>“Why History Says 2023 Will Be A Banner Year For Stocks By Benzinga” Investing.com UK, 8 Feb. 2023, https:\/\/uk.investing.com\/news\/stock-market-news\/why-history-says-2023-will-be-a-banner-year-for-stocks-2908244<\/a><\/a><\/p>\n

4. <\/span>“History Says the S&P 500 Could Soar in 2023 — 2 Perfect Stocks to Buy Before the Rebound” The Motley Fool, 10 Feb. 2023, https:\/\/www.fool.com\/investing\/2023\/02\/10\/sp-500-could-soar-in-2023-2-perfect-stocks-to-buy\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":701,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/702"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=702"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/701"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}