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This 'boy-who-cried-wolf' investment can beat long odds and outperform under Trump


Published on 2025-03-29 06:21:19 - Insider
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  • Smaller stocks are off to a disappointing start once again, and while they're at risk right now, strategists say they're still worth it.

The article from Business Insider discusses the outlook for small-cap stocks in 2025, highlighting their potential as a significant investment opportunity despite the economic uncertainties. It notes that small-cap stocks, represented by indices like the Russell 2000, have underperformed compared to large-cap stocks in recent years, but this could change due to several factors. Firstly, small caps are often more domestically focused, which could benefit them if the U.S. economy avoids a severe recession. Secondly, with expectations of interest rates potentially decreasing, smaller companies might find it easier to finance growth. The article also mentions that small caps could offer value as they are currently trading at lower valuations compared to their larger counterparts. However, it warns of risks including economic downturns, higher borrowing costs, and sector-specific challenges. The piece suggests that while there are opportunities, investors should be cautious and consider diversification, focusing on sectors within small caps that show resilience or growth potential, like technology or healthcare, and be prepared for volatility.

Read the Full Insider Article at:
[ https://www.businessinsider.com/stock-market-outlook-small-caps-economy-recession-risk-investing-strategy-2025-3 ]