I’d like to think that with as much money as we’ve given our subscribers the chance to make over the years – and with as much success as we’ve had…
We’re pretty humble.
There are all kinds of people out there that couldn’t even come CLOSE to hitting the kinds of numbers we have that brag daily about their occasional wins.
However, there is something that truly makes us happy…
And that’s when a major news publication validates what we’ve said before.
So, you can bet your bottom dollar that when the Wall Street Journal backs up what we’ve told our readers…
We want to toot our own horn a little.
What did they say? Well, it has to do with the market conditions of today and where they see the best places for investors to put their money…
And it’s the same place we told you to put it a few weeks ago.
Did you catch the article we put out a few weeks ago about how the market is shifting and how buying a lot of shares of smaller stocks was passé and how you’d actually be better served at putting your money in a bigger, more established company?
Understand, everything is cyclical…
Strategies that were once thought of as old or archaic are new again.
Starting with the dotcom era in the late Nineties, the smarter investing strategy was if you had $5,000 to invest – it would be better to put that $5K into buying multiple shares of a smaller stock – rather than just a few shares of a larger, more established one.
Why?
Because the smaller companies were seeing faster and MUCH bigger returns.
If a small stock got a little bit of good news – it wasn’t out of the realm of possibility to watch them jump 50% – 75% overnight…
Whereas returns in a more established company like an IBM (IBM) or an AT&T (T) would be much smaller and come at a much slower rate.
But that’s not the case anymore…
In today’s market, it’s the Big Boys that seem to record the bigger returns – and they’re doing it faster.
Even more…
The bigger stocks tend to be a much safer alternative than putting your money with an unknown, as it takes something major for a Blue Chipper to lose a lot of value – where it could be something small that sends your $4 stock tumbling into the basement.
If you remember reading the piece we put out a few weeks ago – then you remember exactly what we’re talking about.
Which is why when the Wall Street Journal says the exact same thing – it lets us know that we’ve truly got our finger on the pulse…
And it also means we’re serving our subscribers to the exact standards we’ve always promised to.
So…
Did you see the article?
It was titled: Bigger Is Better in U.S. Stock Market: Small companies, viewed as havens when turmoil swirls overseas, aren’t getting much boost this time.
And it totally validated EVERYTHING we told you a couple of weeks ago.
The article focused on the Russell 2000 – the small-cap index where companies have traditionally recorded more growth than companies in the Dow and S&P 500…
But while companies in the S&P 500 have gone up 6.9% over the past year…
The Russell 2000 has LOST 9.2%.
This is HUGE…
And the rally in June has only exaggerated that difference between the losses and gains, as the S&P 500 has gone up another 7% – practically DOUBLING the Russell 2000’s 4.4%.
The June rally has also done wonders for the kinds of companies in the S&P 500…
And once you factor in that some of the market’s BIGGEST winners are giants like Facebook (FB, up 47% on the year) and Netflix (NFLX, up 39% on the year) – it only solidifies the transition from little to big even more.
Of course, as a subscribers of the GorillaTrades – you already knew that.
In fact, you may have already started shifting your portfolio to reflect this change.
If you did…
Congratulations – you’re making smart decisions.
If you haven’t – you may want to start looking at doing so. It could mean the difference between ending the year in the black instead of the red.
“Everyone thinks of changing the world, but no one thinks of changing himself.” ― Leo Tolstoy
