Analyst Articles

As we explained yesterday, small-cap investments are a historically-proven way to beat the market.  Our goal when we started Project Alpha was to selectively pick small-cap stocks which could outperform the market without excess risk. Since our first pick in March of last year, the Project Alpha portfolio has returned 12.8% while the S&P 500 has returned a meager 0.19%. #-ad_banner-#While Project Alpha was originally reserved for premium subscribers, we have decided to open the series to all our readers. And today, we are excited to bring you our first new pick this summer. This Misunderstood Company Could Be The Next… Read More

As we explained yesterday, small-cap investments are a historically-proven way to beat the market.  Our goal when we started Project Alpha was to selectively pick small-cap stocks which could outperform the market without excess risk. Since our first pick in March of last year, the Project Alpha portfolio has returned 12.8% while the S&P 500 has returned a meager 0.19%. #-ad_banner-#While Project Alpha was originally reserved for premium subscribers, we have decided to open the series to all our readers. And today, we are excited to bring you our first new pick this summer. This Misunderstood Company Could Be The Next Big Tech Breakthrough Though small caps outperform the market in the long term, these picks are far from a dime a dozen. In fact, small-cap companies often face more obstacles than their larger counterparts. One of the biggest difficulties small-cap companies encounter is staying on top of innovation. Frequently strapped for R&D capital, these firms can easily be crushed by well established companies with huge budgets and armies of researchers. It’s even harder for these companies to achieve sufficient market penetration, and it is rare for them to gain the traction needed to compete with the “big kids” on the… Read More

There’s an old adage in finance that goes, “sell in May and go away,” and it’s not without good reason. According to the Stock Trader’s Almanac, the Dow Jones Industrial Average has returned -1.1% on average from May to October since 1950 compared to an average 8.4% return from November to April. #-ad_banner-#Selling all your holdings every summer isn’t always reasonable, though, due to transactions costs and various tax penalties. Instead, we here at StreetAuthority decided to focus on a different strategy. Small-Cap Companies: A Proven Approach To Beating The Market Rather than investing in a lagging market over the… Read More

There’s an old adage in finance that goes, “sell in May and go away,” and it’s not without good reason. According to the Stock Trader’s Almanac, the Dow Jones Industrial Average has returned -1.1% on average from May to October since 1950 compared to an average 8.4% return from November to April. #-ad_banner-#Selling all your holdings every summer isn’t always reasonable, though, due to transactions costs and various tax penalties. Instead, we here at StreetAuthority decided to focus on a different strategy. Small-Cap Companies: A Proven Approach To Beating The Market Rather than investing in a lagging market over the summer, we wanted to find small stocks primed to outperform in the long-term. It’s a pretty simple concept — just like people, companies have the most room to grow when they are still small. Historically, small-cap companies (firms with a market value of less than $2 billion), have significantly outperformed their larger peers in the S&P 500. The chart below shows the performance of a small-cap ETF compared to the S&P 500 since 2000.     ​   Guided by this principle, we started a series called Project Alpha. On Wall Street, alpha is a term to describe high returns… Read More