My Top Stocks To Buy RIGHT NOW
Dear Wall Street Daily Reader,
What if I told you that a single “tweak” to your portfolio could increase your profits by 851%? You’d probably be a little suspicious.
Then, what if I told you this tweak could also reduce your risk? Now you’d really be suspicious. But stick with me…
Because today, I’ll prove it to you…
Small Size, Big Impact
Longtime readers here know that I’m a big believer in micro-cap stocks.
The reason why couldn’t be more straightforward:
Micro-caps represent the one area of the market where we actually have a huge and unfair advantage over Wall Street.
One that translates into huge profits, too.
In fact, countless academics, Wall Street professionals, and Nobel Prize winners have “crunched” the numbers behind the performance of micro-cap stocks.
What they’ve concluded is that micro-cap stocks outperform large stocks — by a wide margin!
What’s more, this outperformance happens on every stock exchange, over every time period, in all market conditions.
To see what I mean, take a look at this chart:
This chart shows the hypothetical performance of two portfolios.
The first portfolio, shown in light blue, contains large-cap stocks only. As you can see, a $1,000 investment in large-cap stocks in 1927 would be worth $3 million by 2015.
But now take a look at the second portfolio, shown in dark blue.
This is a portfolio of micro-cap stocks.
A $1,000 investment into these stocks in 1927 would be worth $20 million!
Risk Reduction
And not only does an allocation to micro-caps increase your returns…
It alsoreduces your portfolio’s volatility and risk.
As a leading investment manager reported, “Based on a 25-year study… placing a portion of your equity allocation in micro-cap stocks actually increased portfolio returns while simultaneously reducing portfolio volatility. This is a powerful finding.”
Powerful, indeed!
But this outperformance doesn’t mean you should run out and invest your entire portfolio into micro-caps.
In fact, just a little bit can go a long way…
A Little Goes a Long Way
To get the benefits of micro-caps, you only need to move a tiny portion of your portfolio into them.
To show you what I mean, look at this chart. It shows how an allocation to micro-cap investments in just 5% increments can have a huge impact on your portfolio.
As you can see, an allocation of just 5% can boost your annual returns by more than 6%. And allocating 10% can increase your returns by double digits.
That outperformance really adds up…
For example, if you have some time before you retire, allocating just a tiny amount of micro-caps to your portfolio could boost your overall returns by nearly 851%.
If you’re starting out with a $100,000 portfolio, that’s the difference between ending up with $600k… or ending up with a nest egg of $1.5 million!
Bottom line: Micro-caps can help you boost your returns by hundreds of percent…
And they can help you reduce your risk.
Given the recent market pullback, we can buy many of them on the cheap, too — which means we have even less risk, and even more profit potential.
And that’s why micro-caps represent my single favorite investment right now.
Ahead of the tape,
Lou Basenese
Editor and Founder, Trend Trader Daily
