Selasa, 28 Juni 2022

Small Caps, BIG GAINS

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Small Caps Are Poised for a Run

Jody Chudley, Contributing Analyst, The Oxford Club

Jody Chudley

Small cap stocks have taken a beating in 2022.

And when I say "beating," I'm not talking about a bad little run.

I'm referring to what is poised to be the worst first half of the year in the history of the Russell 2000 Index, the most popular index for small cap stocks.

From the beginning of 2022 to mid-June, this key benchmark was down a nasty 26.32%.

Chart: A Rough 2022 for the iShares Russell 2000 ETF
 

While a 26% drop from an entire index is shocking, additional perspective is needed to drive home how bad this year has really been.

Prior to 2022, the single biggest first-half decline in the Russell 2000 happened in 2020, when the index dropped 13%.

This year's 26%-plus decline is more than twice that previous record!

As awful as that sounds, it's music to my ears.

You should be excited too...

Because I see a massive buying opportunity - one similar to another that I called out in spring 2020 and on which saw an 83% gain.

Don't miss out on this call... History is on our side with this one!

Get My Thoughts on Small Caps

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