It's well known that small businesses produce the bulk of new jobs in America, year in and year out, but that thesis may be more prescient in a "muddle through" or stagnant economy, such as the one that has prevailed the past three to five years. While the general stock market has seen significant gains since the '08-09 meltdown, smaller companies, despite lack of adequate access to capital for many, have been flourishing.
Most big, corporate stock advisors or brokers will tell you that small caps are the way to go if you're looking for growth, but only nimble advisors outside the mainstream with great research, like Timothy Sykes, can offer you the next top penny stock.
Penny stocks come in all manner of varieties, from small restaurant chain concepts to high-tech startups to the popular "green" companies which don't generally get the press or the credit for their risk-taking mindset. Finding these companies requires a lot of time and research, something the average home investor doesn't have and that's the exact reason why scouring the web for information on particular companies may not be the best approach.
In addition to some of these companies having little time nor money to spend on press releases and public relations, by the time big breakthroughs occur, it's often too late, the stock having already made a significant move.
That is why it's useful to follow Sykes and maybe a few other experts in the penny stock universe, as gains on some of these top picks have produced extraordinary gains in a relatively short period of time.
Small business is the driver of growth in America, and penny stocks are the instrument by which the average investor can keep pace or exceed the ultra-insiders of Wall Street. Think about it. Wouldn't it be better to be in on the ground floor of a little-known company with a load of upside, than a run-of-the-mill S&P 500 company whose every move is telegraphed over CNBC and more than likely previously dished out to the big brokerages? Why pin one's hopes on the big Wall Street-connected companies, many of which are responsible for the high unemployment and tight banking policies that have slowed US productivity to a crawl, when you can invest in some of the most exciting, albeit risky, ventures on the planet.
If you're looking for an edge and don't mind high risk, Timothy Sykes and his website are probably worth the time to investigate.
Wednesday, October 26, 2011
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