Opportunities
This from a recent article published on The Financial Post: Small caps could surge: We spend a lot of time looking at this sector. Business is very good, but you would never know it by the prices of some stocks. Many small-cap stocks are down 50 per cent, 60 per cent or even more from their highs. Investors are gaga over Apple Inc. and other trillion-dollar companies, leaving smaller companies behind with low valuations. How low? Based on recent data, small-cap companies, relative to large-cap companies, have never been cheaper. All it takes is a little bit of confidence from investors and small caps could experience big valuation multiple expansions. If not, then we might see a giant wave of takeovers as large companies buy small companies at big discounts. It might be a fun year for small-cap investors, who have been depressed since February, watching large caps surge while their own portfolios struggled. Canadian small cap companies with low valuations can quickly turn into profitable situations, a point made in another recent article published by BNN Bloomberg: Despite the record earnings rebound in 2021, the S&P/TSX Composite Index is still trading at a historical discount to the S&P 500, thus creating an attractive value opportunity in Canada. There couldnt be a better time to turn your attention to Canadian stocks.