Tom Lee, a fundstrat expert, says that small cap stocks could go up by as much as 60% in 2024. Lee specifically said that the standard small-cap index Russell 2000 could be above 3,000 by the end of the year.
This would be a rise of about 57% from where it is now as this article is being written. Lee said that small cap stocks could do better than bigger ones in 2024, with a 50% increase expected in the next 12 months.
Lee named three specific things that might help a small cap rally, one of which is the fact that small caps are selling for the lowest price-to-book valuation compared to the S&P 500 in 25 years. Lee has said that small caps are the best way to profit in 2024.
Lee told CNBC not long ago that there is a 50% chance that markets will grow by more than 10% in 2024. Also, he said that small caps could go up by 50% in the next year.
Lee thinks that a strong economy, low interest rates, and a good regulatory environment are just a few of the things that will help small caps.
Lee thinks small caps will go up in value because of several things. First, he thinks that small caps are worth less than bigger companies. Second, he believes that small caps will benefit more from a strong economy than bigger companies because they tend to focus more on the domestic market.
Also, he thinks that small caps are more likely to gain from good regulations because they are less likely to be affected by changes in regulations than bigger companies.
There’s no guarantee that small caps will do well or do better than bigger ones, even though Lee’s predictions are generally positive. Before putting money into something, investors should always do their own study and talk to a financial advisor.
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Tom Lee, an expert at Fundstrat, says that small cap stocks could go up by as much as 60% in 2024.
There is no promise that small caps will do well, but Lee thinks they are likely to do well because of a strong economy, low interest rates, and a regulatory environment that is friendly to them.
Before putting money into something, investors should always do their own study and talk to a financial advisor.