Penny Stocks Leading The Way

Dynamic Wealth Report  |  July 31, 2013 Better Than Blue Chip Stocks… or Gold? One investment has outperformed all others in the last few years… If you want to find out how to get in on this exciting opportunity, read all about it here… Penny Stocks Leading The Way By Robert Morris, Penny Stock Research Large cap stocks get all the glory while penny stocks are relegated to the shadows.  It's a common theme in the financial news. Day after day the mainstream media fixates on the Dow Jones Industrials and the S&P 500 as if they're the only market indices that matter.  The leading financial newspapers and websites focus almost exclusively on the biggest and best known companies.  And there's hardly a word about the OTC market or an up and coming small cap. I mean... how many articles does it really take to get the message across that Apple is an amazing company? But here's the glorious irony... Small cap stocks are outperforming their more popular larger cap brethren.  Over the past 52 weeks, the Russell 2000 has gained an eye-popping 35.3%.  Meanwhile, the Dow and S&P 500 have gained 23.1% and 25.8% respectively. Now, don't get me wrong... I realize the performance of the big cap averages is nothing short of terrific.  But it's an indisputable fact that small cap stocks are performing even better. What's more, the pattern of small cap outperformance has continued in 2013. The two large cap averages are each up about 20% so far this year.  But with less than half the year to go, the Russell 2000 trumps them both with a hefty year-to-date gain of 24.4%. Not too shabby. And that's not all... One highly respected Wall Street firm sees good reason for the trend of small cap supremacy to continue.  In a recent note to investors, Goldman Sachs Chief US Equity Strategist, David Kostin, explained why small caps could continue to lead the way. Kostin said... "Small caps' leverage to US economic growth explains our EPS growth forecasts and much of their recent performance.  Roughly 80% of Russell 2000 sales are derived domestically, compared with 66% for the S&P 500, which is more exposed to foreign economic growth and FX." In other words, small cap stocks are likely to benefit more from rising US economic growth than large caps.  Goldman economists are on record projecting US GDP growth will accelerate from about 1.5% now to over 3% in 2014-16. In addition, Kostin believes small cap stocks will continue to rise even as interest rates begin to move higher. "Small cap cost of debt, and therefore margins and earnings, have a low sensitivity to moves in the Treasury yield... [this] same insensitivity should support their performance as rates rise." This is definitely music to the ears of penny stock investors everywhere.  If Kostin is right, there's a good chance penny stocks and small caps will continue to the lead the way for several more years. Profitably Yours, Robert Morris What A Montana Rancher Knows… When it comes to trading commodities, you want to follow in the footsteps of people who've been dealing with commodities for years… if not decades. Learn what this Montana Rancher's uncovered and how he makes money in commodities. Copyright 2013 Hyperion Financial Group, LLC.  All Rights Reserved.  Protected by copyright laws of the United States and international treaties. This email may only be used pursuant to the subscription agreement controlling use of the Dynamic Wealth Report website and any reproduction, copying, or redistribution of this email or its contents, in whole or in part, is strictly prohibited without the express written permission of Hyperion Financial Group, LLC. LEGAL DISCLAIMER: Neither Hyperion Financial Group LLC nor any of it's employees, contractors or officers are registered investment advisors or a Broker/Dealer. As such, Hyperion Financial Group, LLC does not offer or provide personalized investment advice. Although Hyperion Financial Group, LLC employees and contractors may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation. Nothing in this report, nor any communication by our employees or contractors to you should be considered personalized investment advice. Owners and writers may have positions in the securities that are discussed. However, no associated employees or contractors may intentionally engage in any transaction that directly or indirectly competes with the interests of our subscribers. We accept no compensation from any companies mentioned in our reports. Past performance is no guarantee of future results. All information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell any security. All opinions, analyses and information contained herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. Investments recommended in this publication should only be made after consulting with your financial advisor.

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