Want to Outperform Amazon? Buy These Stocks

I believe this article will surprise you.

But first, some background…

The S&P 500 Index is on a roll.

On Monday, August 24, it closed above 3,400 for the first time ever.

That was a big deal. The market closed at 3,386 on February 19. That’s was its all-time high at that point.

Closing above that old high in August was a sign that this market has strength.

And then it did it again. It closed above 3,500 less than a week later.

Now, the surprising part.

We’ve seen a huge move in the S&P 500 Index since March. But the S&P 500 Index only includes big stocks. The median market cap of the group is $24 billion.

It may surprise you to learn that there’s a group of stocks that have done even better. Read on to learn which ones…

It Pays to Stratify the Market

Asset manager Invesco did a study.

It compared small-cap stocks in the Russell 2000 Index to their larger peers in the Russell 1000 Index.

(These two indices comprise the Russell 3000 Index. It includes 98% of the investable stocks in the U.S. market.)

A solid rule of thumb is that small caps have a market cap between $300 million and $2 billion. Large caps have a market cap of $10 billion or more.

Invesco found that after a recession, small-cap stocks do better than large-cap stocks.

Take a look:

(Source: invesco.com)

In seven of the eight time frames, small caps did better than large caps.

The only period it didn’t happen was the three-year stretch after the early ‘80s recession.

Where We Are Today

That is great news for us.

You see, the Federal Reserve Bank of St. Louis President James Bullard just said the U.S. economic situation is improving:

Amazon and the other top stocks of the S&P 500 Index have done well, no doubt. But history suggests other stocks will outperform going forward.

(Source: Springfield Business Journal)

If the recession is over, small caps should outperform their larger peers.

Or, we should say, continue to outperform them.

As you can see in the chart below, they have bested large caps since the market bottomed in March:

Amazon and the other top stocks of the S&P 500 Index have done well, no doubt. But history suggests other stocks will outperform going forward.

(Source: Bloomberg, internal calculations)

This chart shows the Russell 1000 divided by the Russell 2000. When the line is trending up, that means large caps are outperforming small caps.

However, since mid-March, small caps have taken the lead.

This should continue.

Small caps tend to do better after recessions. And Bullard says that’s exactly where we are right now.

He also said the third quarter should be “one of the best quarters ever for economic growth in the U.S.” And he expects to see more of that growth in the fourth and first quarters as well.

Wrapping Up

It may seem strange. We only hear about large caps.

And you may know the largest names make up the bulk of the market.

The top-five stocks comprise 25% of the market cap of the S&P 500 Index. They’ve done well, no doubt.

But history suggests small caps will outperform going forward.

I encourage you to pay attention.

Ian King will have a special webinar on small caps a few weeks from now. It will be the perfect chance to learn more about some of the best opportunities in this space.

We’ll have more information about how you can sign up in future Smart Profits Daily articles.

Good investing,

Brian Christopher

Editor, Profit Line

Previous Post
Next Post


storno brzinol

I see something really interesting about your weblog so I saved to fav.

The Wellington Clinic

I just couldn’t depart your site prior to suggesting that I actually enjoyed the standard info a person provide for your visitors? Is going to be back often in order to check up on new posts


I like this site so much, saved to fav. “To hold a pen is to be at war.” by Francois Marie Arouet Voltaire.

igtv görüntüleme satın al

Friends, I logged into this site yesterday, but my followers came after 12 hours, not 2 or 3 hours, I guess everyone is different??

Buy Beretta guns Online

515459 49187Good post. I be taught one thing far more challenging on completely different blogs everyday. It will all of the time be stimulating to learn content material from other writers and apply slightly 1 thing from their store. Id desire to use some with the content on my blog whether you dont mind. Natually Ill give you a hyperlink on your net weblog. Thanks for sharing. 456109

ruger guns

639669 811034Using writers exercises such as chunking. They use several websites that contain several creative writing exercises. Writers read an exercise, and do it. 665434

replica rolex sky dweller

896229 48542Fairly uncommon. Is likely to appreciate it for people who incorporate community forums or anything, internet website theme . a tones way for the client to communicate. Superb job.. 157156

zomeno feridov

I do trust all of the ideas you have introduced to your post. They are very convincing and can definitely work. Still, the posts are very short for beginners. May just you please extend them a little from subsequent time? Thanks for the post.


viagra 150mg pill – sildenafil 50mg cheap order viagra 100mg pills


prednisolone cheap – cost prednisolone 5mg tadalafil sale


augmentin ca – tadalafil order buy tadalafil 20mg online


bactrim medication – order bactrim online purchase sildenafil


order cephalexin pills – erythromycin usa order erythromycin 250mg pills


sildenafil for sale online – cost of stromectol medicine ivermectin drug


budesonide pill – budesonide online buy order antabuse 250mg


order ceftin 500mg without prescription – order cialis 20mg tadalafil generic


ampicillin 250mg cost – cost cipro 500mg liquid cialis


597845 266770I was searching for this. Actually refreshing take on the information. Thanks a great deal. 41338


amoxil 1000mg over the counter – levitra 20mg brand purchase levitra online


ivermectin 3mg tablet – buy stromectol for humans australia vardenafil 10mg over the counter


tadalafil oral – tadalafil generic name order modafinil 200mg


deltasone 10mg us – ed pills that work quickly generic accutane


generic amoxicillin 500mg – order generic zithromax sildenafil 150mg pills


purchase lasix for sale – lasix 40mg price ivermectin 3 mg stromectol


buy metformin for sale – glucophage 1000mg cost order amlodipine generic


buy lisinopril 10mg sale – tenormin 100mg pill buy tenormin 100mg online cheap


69280 552537hi, your site is really great. I truly do appreciate your give great outcomes 467212


pain meds without written prescription ed meds online without doctor prescription


prescription drugs online prescription drugs online

buy colt guns

847895 455225You made some great points there. I did a search on the subject and discovered many people will agree together with your weblog. 568597


I really like your writing style, wonderful information, thankyou for putting up : D.


brand cialis pills – mobic 15mg canada flomax 0.4mg for sale


buy ondansetron 4mg online – valtrex tablet buy valtrex online cheap


https://gabapentin.icu/# generic neurontin pill

Leave a Reply

Your email address will not be published.