Are you looking to diversify your investment portfolio? Small-cap stocks are gaining momentum and could be a great opportunity for investors right now. At Extreme Investor Network, we believe that understanding the current market trends and catalysts is key to making informed investment decisions.
The iShares Russell 2000 ETF (IWM) is at its highest level since November 2021, showing a promising trend for small-cap stocks. The recent rate cuts by the Federal Reserve have provided a boost to smaller companies, allowing them to expand their businesses with cheaper borrowing costs.
While small caps have been lagging behind large-cap stocks for the year, there is potential for a catch-up trade towards the end of the year. JC O’Hara of Roth MKM highlighted several small-cap stocks that are poised for growth, including Hanesbrands, Dime Community Bancshares, and Insight Enterprises.
In addition to the rate cuts, there is also speculation in the market about the potential impact of the upcoming election on small-cap stocks. With polls showing a close race between former President Donald Trump and Vice President Kamala Harris, there is a possibility that a Trump victory could benefit domestic companies through lower tax rates and reduced regulations.
At Extreme Investor Network, we provide valuable insights and analysis to help investors navigate the ever-changing market landscape. Stay informed and stay ahead of the curve with our expert advice on investing in small-cap stocks.