small caps
Momentum & Growth

Hide Out In Cash and Small Caps While Markets Crash

There’s no question about it. It’s ugly out there. Large caps, crypto, bonds, tech. You name it and they’re all down.

What’s an investor to do?

Well, for one. Cash isn’t trash. The US Dollar has been on a tear against all major currencies, except against the Russian Rouble. In spite of Putin’s war in Ukraine, the Russian Rouble has strengthened because who knew that prices go up when you sanction a major oil producer. Certainly not Sleepy Joe.

According to Biden, Putin’s War is the cause of the highest inflation readings in 40 years. The $10 trillion that the Fed and US government pumped into the economy since Covid had no part (sigh).

As a result, we have asset bubbles everywhere. A 10-year-old Honda Civic is $20k and gas is over $5 a gallon nationwide. Rolex prices are through the roof. A Rolex Panda Daytona that retails for $15k (not that you can buy one at that price from an actual Rolex store) sells for $50k on the second-hand market. This is a crazy price for a stainless steel watch (not even gold).

How to make money trading small caps?

Well, for starters, as I said earlier, cash isn’t trash. Cash is a position. Cash allows you to take advantage of opportunities. There are plenty of opportunities in small caps right now if you focus on energy, food, low floats, and short squeeze names.

Just this week we saw the following gains:

  • PBTS +253%
  • MWWC +160%
  • AUVI +157%
  • IPSI +121%
  • EXLA +84%
  • TCRT +72%
  • IMPP +57%
  • EFOI +52%

The important thing is to not get married to any of these names. Churn em and burn em! Buy dips. Sell rips. Get in and get out back into cash. It’s all about the P-n-L. Make that money and move on. I repeat this mantra over and over again in each of my videos (not a financial advisor).

Of these 8 winners, maybe 1 or 2 will be on next week’s winners’ list. There are always fresh plays and fresh opportunities. That’s the beauty of being an individual investor, not a fund manager. You don’t have to do anything. You can wait it out or go on vacation. There will always be another opportunity. The markets go on whether we are in or not.

BOTTOM LINE

As we keep saying, there are always opportunities in the markets and it’s our job to find winning small caps to buy. Huge gains can be made in such a short amount of time.

It’s important to look for small caps that have yet to run. There are plenty of opportunities out there and we look at hundreds of small caps to buy each week trying to find the best alerts for our subscribers.

Remember, all it takes is one or two to become a winner and you’ve crushed the market indices for the year.

As always, good luck to all (except the shorts)!

WHEN INSIDER FINANCIAL HAS A STOCK ALERT, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!

Disclosure: We have no business relationship with any company whose stock is mentioned in this article and video. Insider Financial is not an investment advisor; this article and video do not provide investment advice. Always do your own research, make your own investment decisions, or consult with your nearest financial advisor. This video is not a solicitation or recommendation to buy, sell, or hold securities. This video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Hide Out In Cash and Small Caps While Markets Crash
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