To SMID or Not To SMID in 2020?

In the financial world the term SMID stands for Small and Mid-Cap stocks.

It’s probably the most overlooked segment of the markets where savvy investors make tons of money by flying under the radar.

While the Big-Cap stocks (IBM, APPLE, Amazon, etc.) get all the attention, the smaller and mid-size companies is where most of the growth takes place.

Example: When Microsoft went public in 1994, it was a small-cap stock.  In fact, nearly every major company today was at one time a small or mid-cap stock.

2019 was a classic example of the markets being led by the big boys.  However, with a few exceptions, most of the “big boys” get too fat and their growth slows down.

That’s not saying they’re undesirable.  It’s saying that they can’t keep growing as fast as they did before they became one of the big boys.

On the flip side, the small and mid-cap stocks very quietly move up on the heels of big market moves like 2019.

Why?

Smart money always seeks value.  And it rotates from one sector to another.

This can be deceiving because while the Financial Whores-of-Babble-On presstitutes rant on about why you should be buying the big boys, money is already shifting to the SMIDs.

Remember, they constantly tell you to zig while they zag…it allows them to take profits at your expense. 

So, if you’re worried about 2020 being more volatile (it will be), check out our December newsletter’s Short and Sweet Tips column where we highlight certain SMID strategies to consider.  Link.

You’ll thank us later.

And share this with a friend…they’ll thank YOU later.