What’s The Best Way Up?

by Investment U Research Team

With the gyrations of the market over the past couple of weeks, many investors are starting to look at options for getting back in. Wall Street has given investors and speculators alike some tantalizing reasons to “jump in the swim.”

While the markets have moved up almost 10%, a number of stocks have done considerably better. In the past, small caps have made up the biggest gainers in any new bull market – there’s no reason this shouldn’t continue.

Small caps are the “red balloons” of the investment world. Their size allows them to take advantage of “wind currents” faster than their larger brethren. Continuing our analogy, mid caps are represented by weather balloons and large caps by hot air balloons.  

Each has its advantages, and all have historically moved at a consistent rate during turnarounds – Small first, medium next and then large. It’s why we’re focusing on small to mid-caps for their speed and “first mover” advantages.

If you’re looking for an aggressive way to ride the markets back up, consider Direxion Small Cap Bull 3x Shares ETF (NYSE: TNA). It’s designed to produce three times the return of an “up” market. Built with small caps, it should be one of the first

But if we’re moving into a protracted up cycle, the mid to large caps should see some big gains as well. Take a look at Direxion Mid Cap Bull 3x Shares ETF (NYSE: MWJ) and  Direxion Large Cap Bull 3x Shares ETF (NYSE: BGU).

As always, the potential for greater reward comes with greater risk. These funds use leverage and can move down much quicker than they move up. For those looking for a safer route, index ETFs can fill that need.

Companies mentioned in this article: TNA, MWJ and BGU.

• Playing the Plunge
• Small-Cap Stocks: The Most Important Trend Headed into 2009
• Small Cap Stocks: How to Find the Russell 2000 All Stars

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---