It’s starting to look like the Trump rally has hit it’s last legs. With all the political storms in Washington, Wall Street is starting to realize all the reforms it was pricing into stocks were premature.
There has been a big move into 10-year U.S. Treasuries, which means money managers are moving out of stocks into the safety of bonds until there’s more visibility. This may be a short-term effort, but changing from “risk on” to “risk off” is here for now.
But the economy still looks like it has sturdy legs underneath it, so it’s not as much whether to go to cash or stay with the big stocks, it’s more about finding the stocks that do best in this kind of market. And that is growing small-cap stocks, anywhere from market caps of $250 million to $2 billion.
The seven little-known stocks with big upside potential I feature here are in the right sectors, with the right products and will either make a bigger name for themselves or get swallowed up at hefty premiums by larger firms in their respective industries.