James Paulsen

A group of small, under-the-radar tech stocks has been outperforming their larger counterparts since June, according to Jim Paulsen, the chief investment strategist of The Leuthold Group.
He recommends that investors tilt their portfolios towards this cohort instead of the larger FANGs, which face a slew of risks including increased regulation.
A combination of valuation, volatility, and performance factors puts these stocks in a more favorable position, he said.
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Cabot Microelectronics, SolarEdge Technologies, and Viavi Solutions are all companies that you’ve probably never heard of.

They’re the top constituents of the S&P 600 SmallCap technology index, and are among those positioned to outpace their larger, household-name counterparts in terms of returns. That’s according to Jim Paulsen, the chief investment strategist of The Leuthold Group, a market research and money management firm that oversees more than $1 billion in assets.

For anyone considering buying tech stocks, he is flagging a prime opportunity to invest in small-cap companies with market valuations under $1 billion instead of the so-called FANGs that include Facebook, Amazon, Netflix, and Google parent Alphabet.

In his recent note laying out this investment …read more


Source:: Businessinsider – Finance

      

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