The Power of Small-Cap Stocks: Hidden Opportunities in Your Portfolio

05/02/2025 18 min Episodio 165
The Power of Small-Cap Stocks: Hidden Opportunities in Your Portfolio

Listen "The Power of Small-Cap Stocks: Hidden Opportunities in Your Portfolio"

Episode Synopsis

In this week's episode of Retire in Texas, Darryl Lyons, CEO and Co-Founder of PAX Financial Group, explores the world of small-cap stocks and their potential role in your investment portfolio. While often overlooked, these companies present unique opportunities for growth - but also come with specific risks. Darryl unpacks the fundamentals of small caps, their historical performance, and key factors influencing their future outlook. Key highlights of the episode include: •    The definition of small-cap stocks and why they differ from traditional small businesses. •    How small-cap companies fit into a diversified investment strategy, typically making up 5-15% of a portfolio. •    The impact of interest rates on small caps and why rate cuts could create a tailwind for these stocks. •    Why private equity is changing the small-cap landscape and what that means for investors. •    Examples of small-cap companies that have grown into industry giants, like Monster Energy and Pilgrim's Pride. •    The pros and cons of investing in small caps, including their potential for high returns and their vulnerability to market swings. For additional insights and to learn how PAX Financial Group can guide your financial journey, visit www.PAXFinancialGroup.com. If you enjoyed this episode, share it with someone who could benefit! Resources: 10 of the Best Small-Cap Stocks to Buy Today | Morningstar  (9) Have the insatiable private markets eaten the small cap effect? | LinkedIn  The Cross‐Section of Expected Stock Returns - FAMA - 1992 - The Journal of Finance - Wiley Online Library  StepStone PowerPoint Presentation Template_Jan 2024  The stars appear aligned for small caps  The best and worst Small Growth funds