Small-cap exchange traded funds (ETFs) are up 15% in the last six
months, compared to large-caps, which are up about 10% in the same
time frame. So, why are small business owners becoming less
optimistic instead of more?
The NFIB (National Federation of Independent Business)
survey's "Plan to Hire" component has dropped. Does this mean
that new jobs will only be coming from the largest
companies and the U.S. government?
Gary Gordon for ETF Expert says that
not only are small businesses finding it difficult to obtain
credit, they intend to reduce planned capital expenditures and
delay or reduce planned hiring.
What gives? Whatever small business owners have been feeling,
small-cap ETFs haven't been reflecting it. Wall Street, as has been
the pattern in this recovery, seems to be moving faster into
recovery mode than the rest of America. [
Why Small-Caps Outperform.
That said, small- and micro-cap ETFs are on an uptrend right now
and you can't fight it. But if small business owners' intuition is
on target, be ready with a stop-loss in place. [
How to Follow Trends.
For more stories about small-caps, visit our
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