Dear Reader, Ever heard of ‘hyper-gearing’? It’s a term coined by my good friend and editor of Australian Small-Cap Investigator, Callum Newman. And it explains why investing in small caps is one of the best methods I know of for generating wealth from the ASX. Because of their tiny size, small caps are more sensitive — or ‘hyper-geared’ — towards market tailwinds compared to their large-cap peers. Let me put it this way. If a $44 stock like BHP Group [ASX:BHP] goes up by four cents, who cares? You don’t even make 0.1%. But if a 4-cent stock like Fastbrick Robotics [ASX:FBR] goes up by the same amount, you’ve made a 100% gain! For shrewd investors, this ‘hyper-gearing’ quality can lead to impressive profits in short periods. Just look at small-cap mining stock Sandfire Resources [ASX:AFR]. After reeling from the 2008 global financial crisis, the Aussie market started to bounce back thanks to a China-fuelled mining boom. And big mining stocks were in a perfect position to capitalise. One such large-cap stock, OZ Minerals, made an impressive 128% gain. But that was nothing compared to Sandfire Resources, which made an incredible 10,942% over the same time frame. You need to be careful, though… The forces that send small caps rocketing up can also send them plummeting down — and often just as quickly... That’s why investing in small caps can be rewarding but also extremely risky. You need expert guidance to know which stocks to buy and, crucially, when to sell them to maximise your returns. That’s exactly what you’ll get when you join Australian Small-Cap Investigator and Exponential Stock Investor. As I mentioned yesterday, right now, you can subscribe to these two small-cap advisories for just $99. That’s more than 70% off for two 12-month subscriptions. Best of all, it’s backed by a 30-day money-back guarantee on your subscription fee. But act quickly. This new year offer is only on the table UNTIL 30 DECEMBER. Click here to join Australian Small-Cap Investigator and Exponential Stock Investor for 70% off the regular price. Cheers, James Woodburn, Publisher, Fat Tail Investment Research |