Small-Cap Stocks, Nasdaq Spearhead Gains; Is The Fed's 'Game Of Governors' Hurting Investors?

Small-Cap Stocks, Nasdaq Spearhead Gains; Is The Fed's 'Game Of Governors' Hurting Investors?

Robert Maltbie, president of Las Vegas-based Singular Research, expressed optimism for small-cap stocks in 2023. One reason: Valuations are more attractive in this area vs. the biggest issues that lead the Nasdaq 100. "With the QQQs getting priced at around 28 times earnings, that's where the vulnerability is," he told IBD. "Small-cap stocks and micro caps also really line up to a new supercycle in commodities."

Maltbie notes that when he spotted the chip-equipment gear maker in IBD's key stock lists, trading around 16 or 17 a share last year, he saw practically zero coverage among the main firms on Wall Street. Shares now trade at 35, up 80% after three moves above the 19.53 buy point of a base within a larger structure. Aehr's products have found a niche within the electric vehicle market.
Maltbie criticizes the manner in which the Fed is using relatively old data to make judgments on how far interest rates should rise. For instance, some of the data the central bank looks at involves surveys of prices on apartment rentals across the country that take place every six months. Maltbie likens that to looking at the health of a stock on its chart by taking into account its 200-day moving average, but not its current price.

"I can virtually guarantee that the monthly CPI will come down the next three or four months. You can get data on rents from other data gatherers. And in the last four months they have been downward," he added. "Savvy fund managers are having their analysts adjust the numbers for both CPI and PCE (personal consumption expenditures) indexes."

Meanwhile, Maltbie thinks a desire among monetary policy hawks within the Fed to talk down the stock market amounts to a virtual "game of governors," alluding to the HBO Max megahit series, "Game of Thrones." Why? The Fed's mission is both to maximize full employment and economic growth while keeping inflation and prices stable. "Are they trying to add to the price stability?" Maltbie asked with a hint of irony.

Future Of The Yield Curve

He believes over time the yield curve will resume its normal shape. That is, the hawkish elements of the Fed will recede. Put another way, at some point we could see the 1-year Treasury note, which closed Wednesday at 4.96%, fall back to 3%. The 10-year bond yield, now at 3.81%, may rise to 4%. Finally, the 20-year bond, yielding 3.97%, could eventually return to 5%.

https://www.investors.com/market-trend/the-big-picture/small-cap-stocks-nasdaq-spearhead-gains-is-the-feds-game-of-governors-hurting-investors/

Singular Research's Emerging Growth & Value Alpha Leaders Webinar

Singular Research's Emerging Growth & Value Alpha Leaders Webinar 2/23 6:15am - 4:45pm PST

Thu, Feb 23, 2023 6:15 AM - 4:45 PM PST

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Emerging Growth & Value Alpha Leaders Webinar

Prospective Presenting Companies:

The Beachbody Company, Inc. (BODY)
ARC Document Solutions, Inc. (ARC)
Real Brokerage Inc, (REAX)
Entravision Communications Corp (EVC)
Safe & Green Holdings Corp (SGBX)
Luna Innovations Incorporated (LUNA)
Harvard Bioscience Inc. (HBIO)
Armada Hoffler Properties, Inc. (AHH)
Acme United Corporation (ACU)
Olympic Steel Inc. (ZEUS)
Loop Media, Inc. (LPTV)
REX American Resources Corp. (REX)

Special Situations Presentation on CRS and MTRN on Monday 1/23 at 8 am PST

Special Situations Presentation on CRS and MTRN on Monday 1/23 at 8 am PST

Monday, January 23rd at 8 am PDT

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Join us for a Special Situations report (a bespoke premium service) with Gowshe Sriharan, CFA, "The Rover" who will present Carpenter Technology Corp. (CRS) and Materion Corp. (MTRN) on Monday, January 23rd at 8 am PDT.

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally.

Materion Corporation produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally.

Please send your questions, comments and feedback to: This email address is being protected from spambots. You need JavaScript enabled to view it.

'Best of the Uncovered' Conference in San Francisco 12/08/22

Singular Research will be hosting our 17th annual "Best of the Uncovered" conference in San Francisco on Thursday, December 8, 2022.

The conference is by invitation only to our clients, but we invite select portfolio managers who we believe will benefit greatly.

If you cannot make the conference, we are offering the conference on a webinar. Please follow the link below to register for the webinar. Thanks and we hope to see you there.

Register Now

Autumn Equinox Webinar | 9/14 6:15am - 4:00pm PDT

Autumn Equinox Webinar Day 1

Please join us for Day 1 of our Autumn Equinox Webinar on Wednesday, September 14 starting at 6:15 AM PDT. Prospective presenting companies are listed below.

Company Name:
LB Foster (FSTR)
Independence Contract Drilling, Inc. (ICD)
Digital Media Solutions, Inc. (DMS)
IDW Media Holdings, Inc. (IDW)
Dynacor Group, Inc. (DNGDF)
Data I/O Corporation (DAIO)
NV5 Global, Inc. (NVEE)
Crescent Point Energy Corp. (CPG)
Mistras Group (MG)
Cannae Holdings, Inc. (CNNE)
Salem Media Group Inc. (SALM)
Seabridge Gold Inc. (SA)
Bigg Digital Assets Inc. (BBKCF)
Iradimed Corp. (IRMD)
Canasil Resources Inc. (CLZ.V)
Banco Latinoamericano de Comercio Exterior S.A. (BLX)

Summer Solstice Webinar on 6/23/22 by Singular Research

Summer Solstice Webinar

Please save the date for our Summer Solstice webinar on Thursday, June 23. This webinar is for our clients and select qualified institutional investors. You may register and be eligible for an invitation to the webinar by following the "Register Now" button.

Presentation schedule is listed below. 

Singular Research's Spring Select Webinar 5/25

Singular Research's Spring Select Webinar

Wed, May 25, 2022 6:00 AM - 4:00 PM PDT

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Please join us for our Spring Select Webinar on Wednesday, May 25 starting at 6:15 AM PDT. Presenting companies are listed below.

Scheduled Presenting Companies (Times PT):

615AM PT: Emergent BioSolutions Inc. (EBS)
700AM PT: Kimball Electronics, Inc. (KE)
745AM PT: SenesTech (SNES)
830AM PT: Mistras Group (MG)
915AM PT: Bigg Digital Assets Inc. (BBKCF)
1000AM PT: Digital Media Solutions Inc. (DMS)
1045AM PT: Salem Media Group Inc. (SALM)
1130AM PT: GreenBox POS (GBOX)
1215PM PT: Voyager Digital Ltd. (VYGVF)
100PM PT: Crescent Point Energy Corp. (CPG)
145PM PT: Entravision Communications Corp. (EVC)
230PM PT: Comtech Telecommunications (CMTL)
315PM PT: Kesselrun Resources ltd. (KSSRF)

Argonaut 2000 Partnerts Q1:22 Review and 2022 Look Ahead Strategy Webinar

Argonaut 2000 Partners Q1:22 Review and 2022 Look Ahead Strategy Webinar

Thu, Apr 28, 2022 4:00 AM - 5:00 AM AWST

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Argonaut 2000 Partners LP is ranked in the top 1% of Long/Short equity funds since 1/1/19. Join us on Wednesday, April 27 at 1 pm PDT for a review of Q1:22 and forward fund managers' 2022 strategic outlook.

Topics and industries of discussion will include:

• 2022 Outlook
• Accessing value vs. growth
• Macro market strategies & geopolitics
• Responding to an aggressive Fed

We will be joined by: Chris Sakai, CFA covering timely opportunities for this market environment including (EBIX), Cannae Holdings Inc (CNNE), Crescent Point Energy Corp (CPG); Lisa Springer, MBA will discuss Salem Media Group Inc (SALM) and Entravision Communications Corp (EVC); Rob Shapiro, CFA will discuss Rocky Brands (RCKY) and Educational Development Corporation (EDUC).