Strength Seen In Small-Cap Equities

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David I. Templeton, CFA3.65K FollowersFollow5ShareSavePlay(4min)CommentsSummaryMuch of the discussion over the last few years has centered around the Magnificent 7 stocks and artificial intelligence.From a reversion to the mean perspective, small cap has been out of favor for some time.From an earnings perspective, small-cap stocks are experiencing significantly stronger earnings growth versus larger S&P 500 companies. syahrir maulana/iStock via Getty Images Much of the discussion over the last few years has centered around the Magnificent 7 stocks and artificial intelligence (AI). With this amount of attention, investors in the Mag 7 stocks have been rewarded with strong performance. ThisThis article was written byDavid I. Templeton, CFA3.65K FollowersFollowHORAN Wealth LLC is an SEC registered investment advisor that manages investment portfolios for individuals and institutions. Our firm utilizes a disciplined investing approach that should create wealth for our clients over time. Our investment bias is to invest in companies that generate a steady return over time, i.e., singles and doubles. This singles and doubles approach tends to lead to investments in higher quality dividend growth/cash flow growth companies. On the other hand, there are times when a company's stock price seems to be trading below its fair valuation. Short term gains are possible in these situations. I have been managing investment portfolios for individuals and institutions for over fifteen years and believe investing is like running a marathon and not a sprint. Taking the road less traveled, more often than not, leads to higher returns. Visit: The Blog of HORAN Capital Advisors at (https://horanwealth.com/insights/market-commentary-blog)
