Small-Cap Stocks, Big Bear Market Opportunities (Size Factor Guide)

Here’s how the size factor helps us find the right bear market buys. [Turn Your Images On] Stock Power Ratings [Small-Cap Stocks, Big Bear Market Opportunities (Size Factor Guide)]( [Turn Your Images On] [Adam O'Dell, Chief Investment Strategist]( Last week’s late rally was a welcome change of pace, but we’re still knee-deep in a nasty bear market. I’m a trader, not a prognosticator. I can’t tell you when the bear market will end. But I can help you identify profitable trades along the way and position your portfolio for the next bull market. Investors have a familiarity bias. We gravitate toward stocks that we know. There’s a certain comfort in size and name recognition. I get it. In a bear market, established large-cap stocks often hold up better than up-and-comer small caps. That impulse to stick with what you know is stronger when market conditions aren’t favorable. That’s where the size factor in my proprietary Stock Power Ratings system comes in… [Click here to see how it helped me find a small-cap stock with big potential.]( [Turn Your Images On]( Suggested Stories: [Energy Power Stock Up in 2022 (Huge Gains Since May!)]( [34% Drop Is NOT a Buy Signal for One Boring Blue Chip]( --------------------------------------------------------------- FROM OUR PARTNERS [FDR Did It First — Biden Plans Much Worse…]( On April 5, 1933, President Roosevelt signed Executive Order 6102 — changing the U.S. dollar forever… On March 9, 2022, President Biden signed Executive Order 14067 — which could change the dollar again ... into something much worse… [Go here now to see the potentially sinister outcome of Biden’s new executive order.]( --------------------------------------------------------------- Earnings Edge [2 Stocks Hold Bear Market Insights (MSM & NG Earnings Preview)]( [Turn Your Images On] [Chad Shoop, Editor, True Options Masters]( After the latest rally, I’m back to where I was two weeks ago: It’s still hard to be bullish right now. And the charts on our Earnings Edge stocks today are not helping that sentiment change. [This sounds bad, but let me explain…]( Suggested Stories: [Fight Inflation, Make Cash With This Retailer (Do the Same With Its Stock!)]( [How Trulieve (TCNNF), Green Thumb (GTBIF) Stack Up — Cannabis Viewer Q&A]( --------------------------------------------------------------- [The No. 1 Biotech Investment for 2022…]( Mysterious tech could soon “delete” diseases from your body … and make a tiny Silicon Valley company soar high. [Get Details Now]( --------------------------------------------------------------- Chart of the Day [Small Caps Scream “Buy” Despite Bear Market — PEG Ratio Spotted It]( [Turn Your Images On] [Michael Carr, Editor, True Options Masters]( My favorite fundamental indicator, the PEG ratio, shows small-cap stocks are a buy. The indicator compares a stock’s price-to-earnings (P/E) ratio to its earnings growth rate. This simple calculation converts the popular P/E ratio to a meaningful data point. The problem with the P/E ratio is that different stocks should have different ratios. But many investors use a static value to determine whether a stock is overvalued or undervalued. A popular strategy is to buy a stock when the P/E ratio is below 15 or some other value. That rule ignores the fact that some stocks deserve higher valuations than others. [The Russell 2000’s PEG ratio shown in the chart below addresses this problem.]( [Turn Your Images On]( Suggested Stories: [Risk Outweighs Reward: Track Market Sentiment With Junk Bonds]( [Kellogg Stock: Bullish Dividend Workhorse Fights the Bear Market Trend]( --------------------------------------------------------------- [Turn Your Images On] 2002: The Securities and Exchange Commission (SEC) began requiring companies with annual sales of more than $1.2 billion to submit sworn statements that backed up the accuracy of their financial reports. 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