Stocks, including small caps, did very little over the course of 2015. But my stance on small caps remains bullish for the year ahead. I've already spilled the beans that I see around 15% upside potential for small caps over the next twelve months. I think they'll outperform large caps. And from my perspective, focusing on rapid growth companies with relatively stable revenue and cash flows is the best strategy right now. Though the calendar is turning a page, that doesn't mean that the fortunes of individual companies will suddenly change! We'll stick with what's working, and load up on positions that have more upside potential than downside risk.
Tyler Laundon is Chief Analyst of Cabot Small-Cap Confidential. To read subscriber reviews of Cabot Small-Cap Confidential, click here.
This is an excerpt from Cabot Small-Cap Confidential, which features little-known stocks with big potential. It offers a limited number of subscribers the opportunity to discover overlooked, low-priced stocks that have the potential to skyrocket. This advisory is best suited to experienced investors who embrace volatility.