Small Cap Investing: Portfolio Allocation and Stock Picking Strategies
CNBC TelevisionJanuary 5, 20262 min892 views
3 connections·5 entities in this video→The Role of Small Caps in a Portfolio
- 🎯 Small caps are economically sensitive and have underperformed the S&P for a long time, though they have shown recent strength.
- 💡 While not a primary focus for some, owning small caps is seen as a commitment that shouldn't be a disproportionately large part of a portfolio.
- 📈 A traditional allocation might suggest 3% to 5% in small caps, potentially through an ETF like the IWM.
Approach to Small Cap Investing
- 🔑 For those investing over time, owning some small caps is absolutely recommended.
- 🧠 The preference is for stock picking within the small-cap space rather than a broad allocation.
- ⚠️ It's advised not to let the small-cap allocation become too disproportionate to the overall portfolio size.
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What’s Discussed
Small CapsPortfolio AllocationStock PickingIWM ETFS&P 500Economic SensitivityInvesting Strategies
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