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Kevin O’leary Says he is Long on Small Cap America

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  • Kevin O’leary Says he is Long on Small Cap America

    Watching CNBC today and Kevin was talking about how the Russell 2K was uniquely positioned to benefit from the corporate  Tax Cut. He says there are 300 companies that are very profitable and pay dividends, will have greatly increased cash flow, and this is a “Once in a lifetime opportunity”.  He says he is currently 60% S&P, and is going 30% small cap. I already slice and dice, almost tempted to increase my vbr position. ************************ that IPS!


  • #2
    The counter argument is that in a mature market, small caps will be the most vulnerable to the next market correction.

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    • #3
      Small caps are usually not seen as large multinational companies, therefore any US specific tax change stands to benefit them more than a larger multinational that gets a large percentage of their revenue from outside the US. The time to enter this trade was November 2016 upon the election of Trump. You can see that the big move did happen early on from then. That was a great opportunity, and its already up 20% from then as is SPY, etc...not that it cant continue going up due to this, but the 'lifetime' opportunity (and attendent risks) was earlier.

      Def agree with small caps have to be careful as they are usually very over valued as a group and can swing wildly, and as @jz says, more directly influenced by economy than multinationals.

      Its super late to the game to state the obvious now, and generally bad to listen to these pundits anyway. This is the same guy that said to get long volatility becuase it happened to be low, and said he bought VXX for that reason. Its lost 48% since then, though Im sure he closed it after a small loss at best.

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      • #4
        As others have said, this was priced in a long time ago.  But if your goal is to track the Russell 2000, VBR isn't the best ETF for that.  VTWO and VTWV are the ones you want.

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        • #5
          And what better way to capitalize on this once in a lifetime opportunity than with O'Shares.  That's right, you too can get in on this fantastic arbitrage opportunity spotted only by Kevin O'leary by buying his ETFs for only 50 bps per year!

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          • #6




            And what better way to capitalize on this once in a lifetime opportunity than with O’Shares.  That’s right, you too can get in on this fantastic arbitrage opportunity spotted only by Kevin O’leary by buying his ETFs for only 50 bps per year!
            Click to expand...


            Wow.  That says it all right there.  More reason to ignore everything you hear on TV.

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            • #7
              I regard O'Leary as a whiney counter  indicator.  He brayed  in Nov. 2013 that Apple  was not  a growth stock; so I bought more.

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              • #8
                Gartman is my favorite contra right now. Almost everything hes said in the last year has marked the opposite top/bottom. Been hilarious, except when he goes long/short in some position you have already.

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                • #9



                  Watching CNBC today and Kevin was talking about how the Russell 2K was uniquely positioned to benefit from the corporate  Tax Cut. He says there are 300 companies that are very profitable and pay dividends, will have greatly increased cash flow, and this is a “Once in a lifetime opportunity”.  He says he is currently 60% S&P, and is going 30% small cap. I already slice and dice, almost tempted to increase my vbr position. ************************ that IPS!



                  Click to expand...


                  You're not really getting investment advice from CNBC are you?
                  Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                  • #10
                    Of course not, that stupid IPS keeps me from getting rich quick by making me stay the course. 

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