In today’s Hidden Profits Report, I take a quick hulk at where the markets are trading and current valuations. In spite of the recent period of volatility, large-cap stocks are clearly overvalued.
Small-cap stocks are trading at discounted valuations with an average PE ratio of just 8.
Small-cap deep-value stocks are trading at ridiculously low multiples of earnings and asset value.
We are fighting a bad tape and rising interest rates in the short term, but long-term super cheap microcap stocks have the potential to deliver enormous returns for patient-aggressive investors.
I share two ideas with you: both are small companies with excellent growth prospects, strong credit reports, and improving business conditions that should be among the big long term small cap winners.