Small Caps Set For A Comeback? Here's Why They Deserve Your Attention
Portfolio Pulse from Surbhi Jain
The article discusses a potential shift from Big Tech to small-cap stocks, driven by expectations of a Federal Reserve rate cut in September. Andrew Graham of Jackson Square Capital highlights the iShares Russell 2000 ETF (IWM) and specific midcap stocks like Fabrinet (FN), Silicon Laboratories Inc (SLAB), Synaptics Inc (SYNA), and Monday.com Ltd (MNDY) as promising investments. The article also notes that the economic outlook and copper prices could influence the performance of these stocks.
August 13, 2024 | 6:18 pm
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Fabrinet (FN) is highlighted as a promising midcap stock due to growing demand for data center components.
Fabrinet's focus on data center components positions it well for growth, especially if the broader market rotation favors midcaps.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) could benefit from a potential Federal Reserve rate cut in September, which may boost small-cap stocks.
A rate cut by the Federal Reserve is expected to benefit small-cap stocks, making IWM a potentially attractive investment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Monday.com Ltd (MNDY) stands out for providing cost-effective business tools, making it a potential investment.
Monday.com's cost-effective business tools position it well for growth, especially if the market favors midcap stocks.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Silicon Laboratories Inc (SLAB) is noted for its specialized semiconductors, which could see increased demand.
The demand for specialized semiconductors positions SLAB for potential growth, especially in a favorable economic environment.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Synaptics Inc (SYNA) is also highlighted for its specialized semiconductors, which could benefit from market rotation.
Similar to SLAB, SYNA's focus on specialized semiconductors makes it a potential beneficiary of market rotation towards midcaps.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 70