At Extreme Investor Network, we are always on the lookout for unique investment opportunities that can help our readers maximize their returns. Recently, Tom Lee, managing partner and head of research at Fundstrat, made an interesting prediction about the potential impact of Donald Trump’s second presidency on small-cap stocks.
According to Lee, small-cap stocks could see significant growth in the coming years, potentially outperforming the S&P 500 by more than 100%. This is due to factors such as tax cuts and a potential resurgence of the domestic economy, which are key points of Trump’s 2024 campaign.
One ETF to keep an eye on is the iShares Russell 2000 ETF (IWM), which has already surged about 9% in November and more than 39% over the past year. With a P/E ratio of 65, the fund is positioned to benefit from the unique advantages offered by smaller companies.
But the potential for growth doesn’t stop there. Lee is also optimistic about the broader equities market, predicting that the S&P 500 could break above 6,000 by the end of the year and top 6,700 by 2025.
In addition to small-cap stocks, Lee also sees Trump’s return to the White House as a catalyst for bitcoin. With multiple tailwinds at play, including earnings visibility and a dovish Fed, investors may be more willing to take on additional risk in the market.
However, it’s important to note that there are still macroeconomic challenges facing the U.S., such as the rising deficit and burgeoning federal debt. While Trump’s proposed changes, like extending tax cuts, may provide some relief, a more comprehensive solution is needed to address these issues.
To help investors capitalize on these opportunities, Fundstrat has launched a new fund, the Granny Shots US Large Cap ETF (GRNY), which includes top stocks that align with favored investing themes. With holdings like Tesla, Oracle, and CrowdStrike, this actively managed fund offers a unique way to tap into potential market growth.
For more insights and expert analysis on investing trends, be sure to stay tuned to Extreme Investor Network. Our team is dedicated to helping you make informed decisions and achieve your financial goals.