Thinking Small Small and microcap stocks have recently started leading the market. Month-to-date, these stocks performance - represented by the Russell 2000 - is double the return of the S&P 500. The outperformance of microcaps is thanks, in part, to President Trump's "One Big Beautiful Bill." Public companies love the bill's new proposed rule regarding interest expense... especially microcap companies. That's because smaller companies typically have higher debt burdens than larger ones. The new proposed rule would say that the amount a company pays interest to service its debt is tax deductible for up to 30% of earnings before interest, tax, depreciation, and amortization (EBITDA). The current rule is based on EBIT. EBITDA is actually a much bigger number, which means that the interest expense will become a lower percentage than EBIT. That means that a higher number of interest dollars will become tax-deductible. The tax benefit for companies in the Russell 2000 would be in the tens of billions of dollars and provide a significant bump to earnings. That significant bump will send shares higher. The best performing stocks all have two things in common... They're small and you've probably never heard of them. Take The Oncology Institute (Nasdaq: TOI) for instance. The company runs a network of cancer clinics delivering medical oncology, radiation therapy, lab diagnostics, infusion services, pharmacy prescriptions, and patient support in community settings rather than hospital-based systems. More than likely, you've never heard of the company, but you'll wish you had... Its shares are up more than 1,120% so far this year! That gain is nearly 49 times bigger than the best performing Magnificent Seven stock, Meta Platforms in 2025. Shares of the parent company of Facebook have climbed less than 23% this year. If you would have invested $1,000 into shares of The Oncology Institute on December 24, your stake would be worth $11,200 today. A $10,000 investment would be worth $112,400 and a $100,000 investment would be worth $1.12 million. Small and microcap stocks are truly the millionaire makers of the stock market. However, they don't come without risk. Not all of them will be winners. Chief Investment Strategist Alexander Green has spotted one tiny stock that he's invested $100,000 of his own money into. Alex says it may be the biggest opportunity he's seen in years... DETAILS ON THE AI STOCK HERE. That's why you sometimes have to think small to win big. Good investing, Kristin |
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