What kinds of stocks stand to do best in 2011? Hilary Kramer, editor of GameChangerStocks.com, says that while many are counting on large cap stocks to outperform the market, investors may do better in small cap stocks. Here's why.
When the economy is weak and the upside for equities is limited, investors typically turn to smaller companies for growth. That dynamic is repeating itself now, as small-cap stocks surge past the sluggish broad market.
Although small-cap stocks are the darlings of many investment analysts, large-cap stocks should not be overlooked by investors seeking to beat the market. In fact, they just may be gearing up for superior returns in the coming quarters.
Brian Stack used the crash of 2008 to revamp the Pioneer Growth Opportunities Fund, and since then, its performance has risen from the bottom of its peer group to the top.
After the fund landed in the worst-in-class category in a rough 2008, portfolio manager Alison Thacker appears to be in the process of dragging it out. How it might fare in other crisis is an open question, but at least it's moving up again now.
