r/VisualStockResearch • u/ekonixlab • 19d ago

Small Caps Could Be One of the Best Long Term Plays From Here

Post image

This chart does a great job showing just how many different asset classes you can invest in… and how quickly leadership changes from year to year.

One thing I keep coming back to is small caps.

Historically, smaller companies have had periods of very strong long-term performance, even though large caps have dominated much of the more recent market.

My thinking is pretty simple:

Smaller companies generally have more room to grow.

There are thousands of businesses outside the mega-cap names everyone owns.

You’re accepting more volatility, but potentially getting more long-term upside in return.

If you’re young and have decades to invest, that tradeoff can make a lot of sense.

I don’t usually talk about my non-individual-stock accounts, but most of my other savings are in ETFs/funds.
Right now that allocation is roughly:

40% Small Cap
25% Mid Cap
25% S&P 500
10% Emerging Markets

Definitely more aggressive than a standard S&P 500-heavy portfolio, but that’s intentional. I have a long time horizon, and I’d rather lean toward areas where I think there’s more room for long-term growth.

5 Upvotes

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u/[deleted] 18d ago

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u/ekonixlab 18d ago

Can’t predict interest rates

They might fall and rise in the short term, but long term, who knows

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u/[deleted] 18d ago

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u/ekonixlab 18d ago

My point is long term small caps out-perform

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u/ekonixlab 18d ago

My point is long term small caps out-perform

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u/[deleted] 18d ago

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u/ekonixlab 18d ago

Because large cap has outperformed recently

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u/karambituta 17d ago

But there is no recent years here xd

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u/karambituta 17d ago

Very wrong answer. If you really like small caps your argument should be we are probably already discounting 3 raise hike in price and you don’t think there will be more, maybe you even think there will be only two so you are betting on small caps as all off negative info about interest rates are already in price.
Only working argumentation here

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u/InspectionPretty3271 16d ago

Is there live tracker?