How to Invest $1,000: Buy Small-Cap Stocks
Among the lowest-priced investing options this fall are small cap stocks – often defined as companies whose total market capitalization (stock price times number of shares) runs from $300 million to $2 billion.
The Russell 2000, an index that tracks the 2,000 smallest public companies, was trading at a price-to-earnings ratio, based on estimated earnings, ranging from 15 to 20 this summer, the lowest this summer. “Small-caps could be in the early stages of a multi-year run of outperformance,” he says.
