Business week agrees: small caps can lead us out of recession - Smaller companies may carry greater weight for many investors
MIAMI, FL, Aug. 4 /PRNewswire/ - In a recent Esquire column of July 15th 2009, Ken Kurson states his case on small cap stocks.
Today's Alerts include: General Motors Corp., Citigroup Inc., American Intl Group Inc., Bank of America, and Yahoo Inc..
"Everyone knows that small caps outperform large caps over the long haul, with the overperformance linked to the higher risk supposedly represented by companies with market caps under $1 billion," Kurson writes. "As we've watched alleged blue chips like Lehman, AIG, GM, Chrysler, Citi, and Countrywide crumble, the wisdom of that risk-reward profile seems dubious."
His conclusion? "That's why I love small-cap stocks to lead out of recessions. Their businesses tend to be single-minded and far less financially engineered than those of hydra-headed conglomerates. And they also tend to carry less debt, especially compared with the engorgements large companies were encouraged to undergo in the past decade."
More nimble + More ideas + Less debt = all the ingredients for a great future...and a great potential opportunity for investors.
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