Small and Sensible – “Susan On Money” for Week of March 4, 2015
by susan linkous | Mar 2, 2015 | Blog
| Hi Everyone,We are very interested in bringing investor’s attention back to smaller companies in 2015. The growth of the U.S. equity markets the last few years has caused many to ignore this important asset class.Let’s look at them,Susan |
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| Defining Small: Small companies are typically defined as those having a market capitalization of less than $1.5 billion. They are sensible for the portion of your portfolio seeking long-term appreciation and are found across all sectors from consumer discretionary to healthcare. The most common benchmark for their performance measurement is the Russell 2000 Index (defined as the smaller 2000 companies of their broader index; indices can not be directly invested into).We believe that a typical growth portfolio can hold about 17% of these smaller companies (please check with your advisor to determine if appropriate for you).We believe there is a premium available to investors from these companies as they typically have growth potential and tend to be overlooked by institutional investors. Please note that the prices of small-cap stocks can be more volatile than those of large. |
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| Tax DocsWe have been notified by LPL Financial that certain 1099s have been delayed a few more days. If you have not received yours, please send me an email: susan@linkousgroup.com. I will promptly check on yours and forward to you electronically if available. I’m also here to work with your CPA to make your tax season as smooth as possible.
Until next week,
Susan R. Linkous
Securities offered through LPL Financial
Member FINRA and SIPC |
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