Adrian Newman’s latest é-Wealth Daily’ article is titled “Why Small-cap Stocks Should Be the Backbone of Any Investment Plan”. [‘e-Wealth Daily’Article]

Adrian Newman’s latest ‘e-Wealth Daily’ article:

Why Small-cap Stocks Should Be the Backbone of Any Investment Plan

You’ve accumulated a little bit of money and want to invest it. But interest rates are at record lows. Real estate? With prices expected to fall in the U.S. another five percent to 7.5% this year, it may be too early to get back into properties. What’s a solid alternative?

During the recent credit crisis, we witnessed a freezing of the financial markets in the U.S. Stocks were not the place to be. Real estate was not the place to be. Bonds were getting risky. Even the security of the biggest banks came into question.

In my mind, small businesses, those that throw off cash flow in good and bad times, were and continue to be the place to be for investors. And for investors who do not own small, cash-flowing businesses, the shares of well-managed, profit-proven businesses are the next best thing to owning the business yourself.

The proof is in the stock prices themselves. We all know the Dow Jones Industrial Average, an index of 30 of the world’s largest companies, is up 93% since March of 2009. But over the same period, the Russell 2000 Index, an index which consists of about 2,000 stocks with small market capitalizations, is up 138%. The rise in the price of the small companies has been 50% greater than that of the big companies since March of 2009!

Don’t overlook the importance of small-cap stocks as an integral part of your long-term capital growth plans.

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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