investing

Best and worst investment ideas for 2015

Small-cap US stocks: An economic play
Small-cap US stocks: An economic play © isak55/Shutterstock.com

Small-cap US stocks: An economic play

The U.S. economy is likely to continue its recovery next year, with growth of 2.5 to 3 percent, says Nick Colas, chief market strategist of Convergex brokerage in New York City. Meanwhile, the European economy is still quite weak, he notes. 

And while small-cap companies typically earn most of their revenue domestically, larger companies generate 20 to 30 percent of their revenues from European countries, Colas says.

"That's a tough hole to fill in 2015. It looks like there will be a triple-dip recession in Germany," he says.

In addition, the Russell 2000 small-cap stock index has underperformed the S&P 500 this year, he points out. While the S&P 500 has returned 12.4 percent, the Russell 2000 has returned only 2 percent.

For all of these reasons, "investors have to focus on smaller companies with more exposure to the U.S.," Colas says.

advertisement

          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Start retirement savings at 24?

Dear Dr. Don, At age 24, I recently started a job working for a corporation. I'm interested in individual retirement accounts. I'd like to look at investing in stocks and bonds and learn more about choosing a 401(k) plan.... Read more

advertisement

Blog

Sheyna Steiner

3 things to know about QE in Europe

Inflation expectations have been drooping in Europe. To revive them the ECB announced an expanded asset purchase program. What does it mean for investors?  ... Read more

Partner Center
advertisement

Connect with us