Another stock market prediction for 2023? Small caps crush large caps.
Entering this new year, large-cap stocks are trading at about 17x futures earnings, while small-cap stocks are trading at about 13x futures earnings. To put these numbers into perspective, large-cap stocks have returned to ‘average’ valuation levels, while small-cap stocks are trading near record low valuations. This is because investors have defended themselves against a potential recession by buying large, low-risk stocks.
When the tide turns in 2023, they will ditch the big caps and attack with the small caps.
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As of the issuance date, Luke Lango did not have any positions (directly or indirectly) in the securities referenced in this article.
Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2023/01/small-cap-stocks-will-crush-large-caps-in-2023/.
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