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Anti-Predictions 2025: Why Small Caps Will Reign Supreme

 

Note from Michael Salvatore, Editor, TradeSmith Daily: Every financial media consumer loves a good prediction. And we understand the love for them…

They’re exciting. They’re bold. And when the ones you follow happen to pan out, they can make a huge impact on your wealth.

But the truth is, predictions can be fickle. If they’re not supported by data, they can easily be a damper on your trading at worst… and a distraction at best.

That’s why we’re doing something very different this year.

All of our analysts’ 2025 predictions use the long-term price action of individual stocks, sectors, and markets to make what we hope will be more effective predictions than what you’re used to seeing.

We like to think of them as “anti-predictions” since we base them on data, not human judgement and conjecture. And one tool, proving already to be TradeSmith’s biggest breakthrough in 20 years, is making the job easier, more fun, and hopefully more profitable for you.

Our series continues today with Lucas Downey, my fellow contributing editor and master of signal studies. Read on…


Anti-Predictions 2025: Small Caps Will Reign Supreme

BY LUCAS DOWNEY, CONTRIBUTING EDITOR, TRADESMITH DAILY

I’ve made no secret of my preference for small-caps this past year in 2024. Here in TradeSmith Daily, we called it the Great Equalizer trade.

All the tailwinds are at small-caps’ back. The Fed’s cutting campaign, the $7 trillion socked away in money markets, and the sheer wealth held by high-income households all point to it.

But what I saw in TradeSmith’s seasonality tools sealed the deal.

We’re looking at market-beating returns for small-caps over the next few months. The trend has already begun, but it’s not too late to get on board. Check out my video here for the full story…

You can check your stocks for reliable seasonal patterns too, by the way, by registering here for free access to TradeSmith Seasonality. Our CEO Keith Kaplan asked that we make it available ahead of his upcoming webinar on the strategy Jan. 8 at 10 a.m. Eastern. You can essentially plan out an entire year of trades this way – see for yourself at this link.

Regards,

Lucas Downey
Contributing Editor, TradeSmith Daily

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