The number one reason to buy small- and mid-cap stocks is their greater leverage to falling interest rates, states Lucas Downey of Mapsignals.com.
The second reason to buy small- and mid-cap stocks is a better earnings growth outlook. Desirable relative and absolute valuations in an accelerating EPS growth environment are the third reason to own more mid and small-cap equities.
The fourth reason to like SMID equities is their much heavier weight in newly outperforming, cyclical, interest-rate sensitive areas. The number five reason to buy smaller stocks is superior money flows since May. A staggering 84% of our 4,473 discrete equity inflows have been in companies with market caps below $50 billion.
To learn more about Lucas Downey, visit Mapsignals.com.
