Last week I asked Ian Wyatt from SmallCapInvestor.com to come and teach us a little about why small caps are perfect for active traders. It got a pretty good response, so today I invited him back to convince us that small cap stocks are our way out of the recession…please feel free to comment with your thoughts and opinions as it’s YOU that drive this blog!

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Investors and traders seeking to recover from the losses of the bear market need to consider small-cap stocks, due to their consistent out-performance following a downturn in the stock market.

Several recent studies show evidence that small-cap stocks are most likely to be the best performing among equities following a recession.

According to a T. Rowe Price report entitled, A Perspective On Financial Topics For Our Investors, in the 12-month period following the end of the last nine recessions, small-cap stocks on average gained 24

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Contrary to expectations (including mine), the Direxion 300% leveraged and inverse ETFs are rapidly gaining traction in the marketplace.

The company launched eight super-leveraged ETFS earlier this week:

 

Fund

Ticker

Index

Large Cap Bull 3x Shares

BGU

Russell 1000 (300%)

Large Cap Bear 3x Shares

BGZ

Russell 1000 (-300%)

Small Call Bull 3x Shares

TNA

Russell 200 (300%)

Small Cap Bear 3x Shares

TZA

Russell 2000 (-300%)

Energy Bull 3x Shares

ERX

Russell 1000 Energy (300%)

Energy Bear 3x Shares

ERY

Russell 1000 Energy (-300%)

Financial Bull 3x Shares

FAS

Russell 1000 Financial Services (300%)

Financial

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