Over the past months, stock newsletters have been busy peddling new "products" or "services" , and they are mainly in the small/microcap space, after all who wants to subscribe to a newsletter telling you to buy Telstra or CBA or BHP, lol.
And here's one response
Bond yields are starting to rise, and this put a bit of a fright through the market on Friday.
But we don’t think the picture for small-caps is suddenly going to change.
There’s a lot of talk of a ‘value pivot’ playing out where boring, old large-caps come into vogue.
However, it doesn’t need to come at the expense of our end of the market.
Really? If it does, the newsletter would be hard pressed to get more traction with its subscription efforts.
Fact is the picture has already started to change the past couple of days, and with the Russell yet to puke big time, there is a lot of risks left in that space.
Ironically the same newsletter starting to make Sell calls on some of their dud stocks which made no headway.
For microcaps to thrive, you need one ingredient- EXUBERANCE , sustained levels. Not just intraday buy and sell trading. They do not lead to confidence. They are not even as responsive to ordinary announcements that they were at the height of exuberance.
