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When do small caps outperform large caps?

We previously wrote about why large caps have outperformed small cap but in this article we discuss the environments where small-cap stocks can outperform large-cap stocks. Early Stages of Economic Recovery Small-cap stocks are often more sensitive to economic cycles and can benefit significantly when the economy starts to recover from a downturn. During this phase: Small-cap companies may experience faster revenue growth as economic activity picks up. They can quickly adapt to changing market conditions and capitalize on new …

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BlueScope is cheap, but are there risks?

We recently researched BlueScope Steel (ASX:BSL) in The Dynamic Investor. The large drop in the share price since its recent high of ~$24 in mid-April prompted us to consider whether the shares present a more attractive entry opportunity. Having come off a lower level since our report, are the shares due for a recovery? About BlueScope Steel BlueScope Steel is a flat steel producer for the domestic Australian, NZ and US markets. The Company is a leading international supplier of …

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Should we be worried about poor market breadth?

  Michael Gable is managing director of Fairmont Equities.   Current share prices available here. You can learn more about technical analysis in this article.  An 8-week FREE TRIAL to The Dynamic Investor can be found HERE. Would you like us to call you when we have a great idea? Check out our services. Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE. Like this article? Share it now on Facebook and Twitter!

“Your Stock Request” – 27 June 2024

“Your Stock Request” is a weekly video where we analyse share price charts for stocks on the Australian market (ASX) as requested by you! Email us at mail@fairmontequities.com with your stock request. Limit of one per person, no guarantee of a mention. This week’s stock request: (ASX:KAR), (ASX:MIN), (ASX:LYL), (ASX:CYL), (ASX:APX) Michael Gable is managing director of Fairmont Equities.   Latest prices available on the ASX website. You can learn more about technical analysis in this article.  An 8-week FREE …

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All about market breadth

Analysing market breadth can provide insights into the overall health and direction of a financial market or specific market index. There are several ways that the study of market breadth can be useful. Indicator of Market Strength: Market breadth measures the number of individual stocks or securities participating in a market move. A strong market rally accompanied by a broad participation (many stocks advancing) indicates widespread confidence and strength in the market. Conversely, if only a few stocks are driving …

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