While the Federal Reserve just raised interest rates again as expected, many Fed watchers believe that the central bank will not be as aggressive in raising rates next year as previously anticipated – and could even lower rates if economic growth slows. How could investors go about playing such a change in Fed policy? After a primer on what the Fed does (and doesn’t do) when it comes to stocks, today’s article identifies some strategies. For more, CLICK HERE.
The author of today’s article declares that if you don’t own microcap stocks (stocks with market capitalizations under $300 million), you are missing out, and proceeds to outline “five important reasons why microcap stocks warrant a piece of your asset-allocation pie.” Reason #1 (and perhaps the most important for investors)? Microcaps outperform bigger-cap stocks over the long term, including both high-return cycles and low-return cycles. To read the other four reasons the author offers for why microcaps deserve a piece of your asset allocation, as well as two additional reasons that have particular resonance in today’s low-growth environment with the prospect of a rate hike, CLICK HERE.