Microcaps May Be Newer Stocks, But History is On Their Side

Investing in small companies – what are often referred to as microcaps – is the best way to make big money in the current and future bull markets.

If you’re ready to take your portfolio to the next level, then let’s look at the big picture. Understanding the past also helps us understand the powerful opportunity ahead of us in smaller companies set to grow large over the next decade.

First, if you look at the chart below, you’ll see that after a long stretch of basically going nowhere, the S&P 500 rallied 227% from December 31, 1979 through the end of 1989.

There were huge winners during the 1980s. The best performers were consumer stocks, including Walmart (WMT), The Gap (GPS), Dillard’s (DDS), and Toys “R” Us. The top performer of the decade was now-defunct electronics retailer Circuit City, which rocketed 8,252% higher.

As the calendar turned to the 1990s, many – probably most – of the well-respected analysts on Wall Street were calling for the end of the bull market. After eight years of gains, it was not a big surprise that many of the bulls had turned cautious.

The headlines will sound pretty familiar to us now:

Market keeps surging, but how long will it last?

Will the Bull Market Turn Tail?

Soaring market called ready for a fall in early ‘93

But history shows the majority was wrong – again. And not just wrong… really, really wrong.

Stocks were about to embark on their best decade ever… building on the 227% rally in the first eight years of the bull market with even bigger gains.

The 1990s were the best 10 years in market history. The Nasdaq ran an eye-popping 794%. The S&P 500 rallied 315%. Anyone who simply figured the bull market couldn’t last missed out on huge opportunities. Individual stocks, not unlike the ones I recommend in Early Stage Investor today, went parabolic.

Do you know what the top stock was in the 1990s? It was a small, little-known computer company at the beginning of the decade, but it grew large over the next 10 years. By the end of 1999, it was worth nearly $100 billion. The stock gained 91,863% during the 1990s – turning just $5,000 into $4.5 million. Even a small investment of just $1,000 would have nearly made you a millionaire!

If you guessed Dell Computer (DELL) … you’d be right. You know the company. Everyone has either owned a Dell or heard of the brand over the last few decades. (And who remembers the “Dude, you’re getting a Dell” guy from the commercials?)

You’ve Got to Buy Before the Crowd Catches On

For decades now, you could find a Dell computer in just about any electronics store. But back in the day, Dell Computers started just where every other company does: hardly followed by Wall Street analysts and often ignored by mainstream news outlets.

However, these smallest stocks are often the fastest moving. And Dell’s larger competitors could never have dreamed of over 90,000% growth in a single decade!

These microcap stocks are where I’ve found the best trades of my career:

  • After a friend tipped me off to Ulta Beauty (ULTA), I researched the business, and my Ulta recommendation soared 2,043%!
  • Similarly, Stamps.com (STMP) rose a rare 2,772%.
  • And Advanced Micro Devices (AMD) grew 2,235% in its earlier days!

Next Wednesday, February 5, I’ll present my Microcap Millionaire strategy to the public. Click here to RSVP for:

  1. The #1 mistake investors are making in the bull market right now, which could end up costing you tens of thousands of dollars. I will show you how to avoid falling into this trap.
  2. The top sectors and industries in which to find microcaps for rare 2,500% gains or more in the years to come.
  3. And details on how to claim my new Microcap Millionaire Portfolio. This is a model portfolio of my nine favorite microcap recommendations to own right now.

All it takes is one click and you’re in.

P.S. We’re on the cusp of what I like to call the “Roaring 2020s.” And if you only buy large-cap stocks in aging companies, you’re going to miss out on the biggest, most lucrative gains.

Every year, and in almost every major bull market, one type of stock outperforms all others: the microcaps.

I’ve worked hard to achieve more expertise in microcaps than anyone else. And for years, my microcap investment ideas like the ones I mentioned above were exclusive to my high-net-worth clients at Penn Financial Group.

But now my latest batch of hot microcap stocks can be accessible to anyone in my Microcap Millionaire Project. Tune in on Wednesday, February 5 for more details.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week,  Matt voices his frustrations with economists who are calling for a recession. Is this the year? Or are the hack economists finally correct? Then, Matt unveils a sector that will bring $30 trillion of economic value – three times bigger than the internet.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

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Those on the right side of this innovation stand to build incredible wealth… just like people did from the creation of the internet and the smartphone. Think of this as your “field guide” for profiting from the next big battery breakthrough. Learn more here.


Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2020/01/microcaps-may-be-newer-stocks-but-history-is-on-their-side/.

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