Alex Green has a warning for anyone hoping for big gains after the Fed cuts rates: "Investors who are completely focused on the same investments as everyone else are making a huge mistake."
Over the past 75 years, rate cuts have been shown to power a small group of overlooked stocks to extraordinary heights.
... with the best stocks having soared as much as 30X or even 40X during a rate cut year.
He calls them "Power Stocks."
Yet, chances are, you haven't heard of them.
At Alexander Green's Emergency State-of-the-Market Summit, he's going to change all of that. You'll discover who the biggest beneficiaries of the Fed's decision is set to be... and how you can play it. PLUS you'll hear a shocking prediction from Alex. REGISTER HERE NOW.
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In this episode of State of the Market from last year, Chief Income Strategist Marc Lichtenfeld declared that "adding small caps to your portfolio is critical for your investment success."
The video was recorded in early 2023, but since then, the outlook for small caps has gotten even better.
At that time, it was widely known that the Fed wasn't done raising rates. In fact, there were four rate hikes in the first eight months of the year.
But now, the market almost unanimously expects a rate cut - perhaps even a 50-basis-point cut - at the next Fed meeting in mid-September. That means lower borrowing costs, which is a huge help to small cap stocks since they often have to take on significant amounts of debt to fund their businesses.
Also, when this episode originally aired, the Russell 2000 index was trading at half of its price-to-earnings ratio from a year earlier. But since then, its P/E has dropped by another 34%!
And Marc isn't the only one who's bullish on small caps.
Just look at these news headlines from the past few days...
'Small caps hold the key': Investing ideas beyond the S&P 500
Small-Cap Stocks Remain Cheap Vs. Large Caps, Analyst Says
Op-ed: Small caps could be in for a revival. Here's why
With experts all across the market projecting a small cap surge, the time to get in is now.
Click the button below to watch Marc's State of the Market episode on how to put small caps to work for your portfolio.
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