Hey Reader,

It’s Alex once again.

Yesterday, we talked about how I discovered the formula behind the Perfect Fed-Proof Portfolio.

I revealed that we will be targeting some of the smallest stocks in the market.

But I know many of you are asking, “why small caps? At a time like this, shouldn’t we be targeting safe blue chip large cap stocks?”

Why Is It Time to Target Small Caps Now?

It’s a good question.

After all, a primary concern of our Members is growing their wealth safely, especially in retirement.

But there are three reasons small cap stocks are exactly what you want to target right now.

First, small cap value stocks are the single best performing asset class in the history of the markets.

But don’t take my word for it.

The American Association of Individual Investors did a study going back all the way from 1928 to 2019.

This is 90 years of data.

And they found that small cap value stocks dominated.

Their study showed that if you put $1,000 into a mix of large cap value stocks, it would have turned into $6 million over those 92 years.

However, if you put that same $1,000 into small cap value stocks… it would have grown to more than $88  million!

That’s about 13-1 outperformance.

So we know small caps work long term.

Second, small caps are available at some of the best valuations in decades right now.

Just about a month ago, Ed Clissold, chief U.S. strategist at Ned Davis Research noted that “small caps are trading at near their steepest discount on record.”

Since then, small caps have already begun leading the big move up in stocks… outperforming the S&P 500 handily.

This is likely to continue.

Generally when small caps achieve this kind of discount, it is followed by very strong growth in the 12 months that follow.

Finally, this specific period in the markets is generally the strongest for small caps.

According to the Stock Trader’s Almanac, November and December are the best months for small caps.

And from mid-December through February, small caps historically outperform large caps.

Every way you look at it… small caps are the place to be.

And our research confirms it too.

The Fed-Proof Portfolio only targets small cap companies.

And in historical testing it’s showing outperformance of 9-1 over the past year… 16-1 over the past three years… and 13-1 over the past 20 years.

Yet all we hear is that the large caps are the safe ones.

Incredible.

But we are going to blow the lid off of this misconception at our free training How to Build the Perfect Fed-Proof Portfolio on December 13 at 1 p.m. ET.

We’re not going to give you part of it.

Or keep the key ingredient secret.

We’ll give you the whole thing… from start to finish.

It’s very exciting.

PLUS, we’ll talk about the three small or microcap companies most likely to soar next.

So remember to mark your calendar for December 13 at 1 p.m. Simply add it to your calendar here:

Add event to calendar

Once you’re a VIP, you’ll also get text message reminders before the event starts – to ensure you don’t miss it.

Do everything you can to make sure you do not miss it.

We get emails from people all the time who forgot to attend big events like this and really regret it.

Don’t let that be you!

Tomorrow, George Rayburn will be messaging you regarding your stories and questions.

So if you have any in the leadup to the event… please enter them by clicking here.

We will be answering some of the most common questions during the training. So be sure to get yours in!

And keep an eye on your inbox for George’s message tomorrow.

Good investing,

Alexander Green

P.S. You can also follow along with this whole series at…

https://fedproofportfolio.com/

You can find every article there so you won’t ever miss one.

I’ll see you on December 13!