The performance of the Aussie share market’s blue chip stocks this year shows you how dangerous it can be to put too much faith in them.
Now when it comes to Aussie stocks, the fun, the excitement, the Nitro power stocks are small-cap stocks.
The ACCC has officially approved the expanded co-operative deal between Qantas [ASX:QAN] and American Airlines [NASDAQ:AAL]. The ACCC had to consider the deal, and see whether it would hurt consumers’ choices or reduce competition.
Shares in port operator Asciano Ltd [ASX:AIO] exploded today, gaining nearly 17% on a broadly positive day for the Aussie stock market.
Investors are scared. They’re buying dividend stocks, not because they’re bullish on the outlook for the stock market, but because they don’t have a choice.
We love small-cap stocks, but they’re risky. So what if you could find a market where you could make small-cap gains from big blue chip stocks?
A huge amount of money has flowed into the stock market over the last three or four years. Higher yields have attracted income hungry investors.
Once it floats, Medibank’s market capitalisation will be as much as $5.5 billion. That will place it among the 70 biggest companies listed on the ASX.
If you can buy into the right small-cap story just before the liquidity and interest in its shares picks up — you could bag returns far greater than what you find among large-caps.