From Profit Confidential January 29, 2013 - 1:52am
Small-cap stocks will be a key driver of the broader market should the U.S. and global economies continue to improve. In 2012, small-cap stocks trailed only the technology sector as far as performance. The Russell 2000 advanced the most in December. If 2013 is a strong year for the economy, small-cap stocks will deliver.
Small-caps have been impressive so far in 2013, as the Russell 2000 is up six percent, with the index trading at the 900 level for the first time.
In my view, continued economic renewal will drive small companies higher, because these companies tend to be able to react more quickly to a changing economy.
My stock analysis suggests that what happens in January will be an important indicator for the year as far as performance. Historical records indicate that stocks have increased an average of 1.6% in January since 1969, according to the Stock Trader’s Almanac.
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