A new king of the stock market has been crowned.
Last week, Nvidia (NVDA) briefly passed up Microsoft (MSFT) and Apple (AAPL) to become the largest publicly traded company in the world. Microsoft is back in the lead as I write this, but it remains a tight race. All three firms are currently valued at more than $3 trillion.
In total, seven U.S. companies are worth at least $1 trillion.
These mega-cap stocks have been grabbing nearly every headline here in 2024 – and for good reason. They have been the main drivers behind the stock market rally that began in October.
But what’s been going on in the small-cap world? These are the companies that will become the next trillion-dollar businesses. Why have they been lagging and when will the group take the torch back from the mega-caps?
That’s what Tim Bohen and Matt McCall talk about on today’s new episode of the SteadyTrade Podcast.
Matt talked a bit yesterday about the large performance gap between a handful of the biggest companies and the rest of the market. Well, the outperformance ratio between large caps and small caps is at its highest level since 2000.
Here’s another stat to help put that in perspective…
The total value of the 2,000 stocks in the Russell 2000 Index is just below $3 trillion. Meanwhile, there are now three individual stocks with market caps greater than that entire index.
Tim and Matt believe it’s only a matter of time before the small caps catch up to their larger counterparts. And that will create an incredible investment opportunity for those who see what’s coming.
Two small caps in particular are at the top of my watch list right now. I give you their names in the podcast. Both are making money and have huge growth stories fueling them in their respective niche megatrends – batteries and forever chemicals.
Small caps’ time is coming. And that makes now the right time to prepare your portfolio.
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