Most of my readers will tell you that my favorite index to search for hot stocks is the Russell 2000, which holds names with market caps up to about $2 billion.
They might also say that it’s been rather stagnant over the past several months…
But according to my analysis, it’s highly correlated to the S&P 500 over time. So when the Russell 2000 has been stagnant for a long period of time, it tends to play catch-up fast.
If you look at its history, the index has some of its biggest moves toward the beginning of the year!
So there’s a particular group of Russell 2000 stocks to trade in 2022 for remarkable returns that I want my readers to start looking at now…
2 Russell 2000 Stocks to Trade in 2022
Now, I’ve said this before and I’ll say it again…
The top Rusell 2000 stocks tend to outperform the top S&P 500 stocks by a factor of 6.5-to-1 when I look back at my relative strength list.
That’s mostly because these Russell 2000 stocks to trade in 2022 haven’t been snapped up by large hedge funds yet.
But once they become darlings of Wall Street, we typically see strong accumulation in a run to make it into the S&P 500.
That causes the stock’s price to increase dramatically — and fast.
If you don’t believe what I’m saying, you need to realize that all of the popular names we loved our entire lives were once struggling to become part of the S&P 500.
Think of names like Netflix Inc. (Nasdaq: NFLX) and Intel Corp. (Nasdaq: INTC)… I even remember Apple Inc. (Nasdaq: AAPL) trading for not much more that $10 per share in the late 1990s.
Check out my short video below to see what Russell 2000 stocks to trade in 2022.
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to!
P.S. I don’t want to scare anyone, but traders who don’t have a financial plan of action for 2022 might be in some hot water…
Luckily, I’m sharing my “Turning Point 2022” presentation, where I’ll give away three huge predictions and my favorite play for the new year.
The timing of this is absolutely crucial because we’re cutting it close with only a few days to spare in 2021.
And with world health getting more complex, it should come as no surprise that we might be in for another bumpy year ahead…
