The Source of the Biggest Gains in 2023

This group of stocks is poised to take off in the new year... [Shield] AN OXFORD CLUB PUBLICATION [Liberty Through Wealth]( [View in browser]( SPONSORED [3rd-Gen Crypto Could Be the Biggest Yet]( AOL was replaced by Yahoo... and Yahoo was replaced by Google. Google was third generation... and it won. Now the same thing is happening with crypto. Bitcoin came first... then Ethereum... and now a $2 crypto is being hailed as the next huge cryptocurrency to own. [Find out why it's being called the "Ethereum Killer" here.]( EDITOR'S NOTE Today Alexander Green states his argument for why he believes microcaps are the best place to invest in 2023. And [what he just did is shocking](. You see, he's beaten the market by 158% since 2001... surviving five bear markets. But now he says this tough market has created an opportunity so big... with a risk-to-reward ratio so compelling... that [he's certain it will make him a fortune](. You can even get in right now for [as little as $3](. [Go here to discover exactly where Alex is putting his money.]( - Nicole Labra, Senior Managing Editor THE SHORTEST WAY TO A RICH LIFE [The Source of the Biggest Gains in 2023]( [Alexander Green | Chief Investment Strategist | The Oxford Club]( [Alexander Green]( Despite the significant rally we've seen over the last few weeks, most sectors of the market - with the exception of energy - are still down sharply for the year. Some equity classes have fared worse than others. [Yet one class, in particular, is likely to seriously outperform in the year ahead.]( It offers the best opportunities in the market right now, in my view. Let's start with a bit of background... In a bear market, large cap stocks hold up better than midcaps. Midcaps hold up better than small caps. And small caps hold up better than microcaps, the smallest of small cap stocks. However, history also shows that when the market lifts off in earnest, midcaps outperform large caps, small caps outperform midcaps, and microcaps outperform small caps. In other words, the whole process reverses. Microcaps are the most volatile class of stocks. They are also [the most profitable in a rising market](. As you can see in the chart below, [microcaps outperform everything else over the long haul](. [Microcaps Over Everything]( It isn't very close: $1,000 invested in large caps a century ago is worth $12.3 million. The same amount invested in small caps is worth $38.5 million. And $1,000 invested in a diversified portfolio of microcaps is worth $67.8 million. The trade-off for this $55 million in outperformance is - you guessed it - greater volatility. SPONSORED ["The Single Most Predictable, Profitable, Income-Gushing Investment of My 40-Year Career" - Alexander Green]( [Reach a Golden Star]( Thanks to a major mistake by Vladimir Putin... Wall Street is now projecting a rise from $30 to $280 for one energy stock. The company has seen profits rise 2,400% since 2020... it pays a 10% dividend... and it's now able to make up to $200 million per shipment of its product. [Here's everything you need to know from legendary stock picker Alexander Green...]( This is especially true of those microcap companies that are not yet profitable. But pre-profit is not the same as pre-revenue. I have never recommended a microcap that doesn't already have substantial sales growth. Those microcap firms that have not yet turned the corner on profitability saw their shares suffer the most in 2022. It's not hard to see why. Companies that are unable to support their growth with their own cash flows must tap stock and bond markets periodically to raise fresh capital. But interest rates are a lot higher than they were at the beginning of the year. And it's harder to complete a secondary stock offering in a down market. Plus, low share prices make raising capital more expensive. More dilutive. Here's an example. Let's say a company has 5 million shares outstanding at $20 a share... or a market cap of $100 million. If the company needs to raise $20 million, it can issue 1 million new shares at $20. That would dilute existing shareholders by 20%, since there would then be 6 million shares outstanding instead of 5 million. But look what happens if the share price declines to $5. To raise $20 million, it now must issue 4 million new shares. That would take the total number of shares outstanding to 9 million, a far greater dilution. That's a big reason why small, unprofitable companies get such a haircut in a down market. But here's the good news... For starters, this reality is already reflected in share prices. [It's a big reason why microcap stocks are down so much.]( It's also important to remember that many of the market's biggest gainers over the past few decades - companies like Amazon (Nasdaq: AMZN), Tesla (Nasdaq: TSLA) and Netflix (Nasdaq: NFLX) - saw their biggest gains before they ever earned their first dollar. Investors could see that blockbuster sales growth would eventually turn into powerful earnings growth. And so they bid the shares up in anticipation of big profits down the road. I expect the same thing to happen in 2023, [as microcaps with double- and triple-digit sales growth - but no profits yet - bounce back in a big way and turn in a bravura performance](. Unfortunately, most equity investors have a strong tendency to believe that what they should have done in the past is what they ought to do now. In other words, if large cap value stocks held up best in 2022, that's where they believe they should put fresh money to work for 2023. Large caps and midcaps should do fine next year. [But not nearly as well as microcaps.]( That's why it makes sense to position yourself for the turnaround that lies ahead. In fact, [I've personally already gone all-in](. To learn more about the fantastic upside potential of microcap stocks in 2023, just go here. And please excuse me when I say “I told you so” this time next year. Good investing, Alex [Leave a Comment]( RECOMMENDED LINKS [Wall Street FEEDING FRENZY on 5G SuperStock!]( [This NEW Electric Vehicle Stock Could Help Fund Your Retirement]( [Did FedEx Signal a Crash?]( [Click here]( to watch Alex's latest video update. For Alex's latest video updates, subscribe on [YouTube](. 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