Pride Before the Fall; Blue Chips Before the End: Here's Why

It has been Wall Street cannon that small-cap stocks beat the large-cap stocks over time. While this has been true over the past 30 years, it is a bit more nuanced than that. And when it isn’t true, like right now, it is a sign of a looming equity apocalypse. You are receiving this email because you subscribed to Energy and Capital. [Click here]( to manage your e-mail preferences. [Energy and Capital logo] Pride Before the Fall; Blue Chips Before the End: Here's Why [Christian DeHaemer Photo] By [Christian DeHaemer]( Written Jul. 30, 2019 The Large-Cap March of Doom It has been Wall Street cannon that small-cap stocks beat the large-cap stocks over time. While this has been true over the past 30 years, it is a bit more nuanced than that. And when it isn’t true, like right now, it is a sign of a looming equity apocalypse. And by nuanced, I mean that small-cap stocks lead the market out of corrections but large-cap stocks lead the market in the last phase of bull markets. Below is an historic chart of the Wilshire family of funds. It runs the gamut from microcaps to large caps and a few in between. 3 Cryptos Better Than Bitcoin I warned investors not to buy Bitcoin, and then it crashed. Bitcoin lovers went berserk. Now, the Bitcoin crash is over, but Bitcoin’s technology is a dinosaur. I know of at least three cryptocurrencies with far better tech than Bitcoin and they’re poised to dominate the entire crypto market. Now is a great time to get into these 3 cryptos along with a few others we’ve identified as potential big winners. I’ve just recorded a free video to tell you about the profit opportunities in each one. [Click here to watch this video now.]( Blue Chip Leaders For example, from 1997 to 2000, during the dot-com bubble, the stocks with the highest market value, like Amazon, AOL, and Microsoft, had the biggest gains. These are represented by the black line in the chart below. In 2003, when the market started to climb out of its funk, the pink line, which represents the smallest companies, or microcaps, started to move. From 2009, after the Great Recession, the small companies again led the charge but were soon eclipsed by the blue line, which is mid-cap companies. [Wilshire 30 Years Chart] By September 13th... China Loses and YOU Are RICH President Trump just signed [these secret trade war plans...]( And they reveal a way for any American to stake a claim and collect checks... For $2,493... $4,112... and $6,383 — every month! But you have to [stake your claim]( by the September 13th deadline. [Click here now to see Trump’s trade war plans... and claim your first check before it’s too late.]( However, if you just look at the last year from August 2018, you find that the big companies are leading again. Not only did they sell off the least, but they also made the most gains rising out of December's correction. The large caps returned less like a phoenix and more like a mafia Don who bought the jury and declares that the D.A. “don’t got nothin”... One-year chart: [Wilshire One year] What we are looking at is an example of the business cycle and creative destruction. Large caps get the most benefit from easy money and positive governments. They have economies of scale. They buy back shares and take on massive debt. They IPO vaporware, unicorns, and cash flow negative companies. Right now I can walk outside and ride one of four different brands of scooter for a half an hour for under five bucks. I can then take a picture of that scooter, log off, and toss it into the harbor. Companies like Uber, Lime, and Bird will never make money. But I’m okay with Wall Street subsidizing my transportation. If these guys are lucky, they will make their money before the party ends. Party Like it's 1998 There are a number of similarities between today's market and the 1998–2000 market. There is a global slowdown while the U.S. remains bullish. Interest rates are being cut after they were raised prematurely. Large-cap tech is leading the market higher. The good news is that there is a great deal of money to be made in the last two years of a bull market. This is why I’m investing in dominant fast-growing trends like the 5G evolution. [Check it out today.]( Avoid future regret. All the best, [Christian DeHaemer Signature] Christian DeHaemer [[follow basic]@TheDailyHammer on Twitter]( Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of [Bull and Bust Report]( and an editor at [Energy and Capital](. For more on Christian, see his editor's [page](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! 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