Summary
Historical small capitalization stock outperformance over large capitalization stocks is heavily weighted towards Q1.
In my view, three biotech microcaps may yield among the best risk/reward scenarios for investors today.
Geron is my top pick among small cap biotechs in 2018.
Antares Pharma likely to regain vitality after its post CRL slump for its testosterone treatment Xyosted.
AcelRX two addressable issues may lead to approval for the company’s DSUVIA pain treatment.
Microcaps and Biotechs may be the perfect formula for portfolio jet fuel in early 2018
If you want to increase your odds of finding alpha in your portfolio performance, you need to look beyond indexing and diversified large caps (SPY) (VOO) to find special situations where potential rewards outstrip risk. Below I discuss three biotech microcaps (IWC) which may deliver outsized returns in the new year.
If you want to improve your odds of growth in portfolio returns for the year, it makes sense to look at smaller cap (IWM) stocks, particularly in the first quarter of the year. Through the decades small caps have outperformed large caps (IVV) fairly handily.
