While the S&P 500 Index’s pullback continues, there are signs that a new stage in the bull market is setting up.
Small caps and microcap stocks are showing strength relative to large-cap stocks. This is bullish.
A bull market is built on confidence. As investors become more confident about the stock market, they put even more cash to work in the market. That buying pushes prices up.
As confidence in the bull market rises, so does speculative energy. A healthy bull market involves a high degree of speculation, and speculators often buy the smallest companies in the market. That’s because small-cap stocks tend to deliver the strongest gains in the market.
That’s what we’re seeing right now, as I explain in today’s six-minute webinar.
Click here to view the slides.
To read today’s transcript, just click here.
That’s all for today. If you have any questions, you can reach me and the team at MarketIntel@BanyanHill.com. Stay tuned for trade alerts this week.
Regards,
Michael Carr
Editor, Market Intel
