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.