What small cap stocks should I buy?
It’s the question that causes level-headed, long-term-thinking financial advisors to take a step back.
That question carries a lot of underlying meaning that’s not necessarily positive for investors. It’s associated with words like “gamble,” “risk,” and “speculation” – dangerous words but words that attract investors nonetheless.
So when Cheryl Cason of Fox Business asked Mark Matson if smaller stocks were “a better bet” for investors, Mark Matson took a step back by saying, “I don’t ever want investors speculating with their money. What I want them to do is build a prudent portfolio, and part of that is adding diversification.”
… and part of that diversification is adding small cap stocks.
Matson, an advisor who’s well-reviewed by his clients and colleagues, elaborates on this in the video below.
Cason’s question came after she announced that total returns for small stocks were about 40% higher than S&P 500 returns from 2003 to 2013. Continue reading