'Strong Rally' in Small-Caps May Emerge
Separately, Citigroup's Chronert also highlights several positives for small-cap stocks that investors may be ignoring. He notes that, in general, the one-, three-, and six-month forward returns from such declines have been positive. However, in this environment, anything is all but certain.
"Nearer term, we expect stabilization, although the intermediate-term picture will likely remain clouded by the increased urgency to address both spending and revenue issues," Chronert writes.
-- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes.
>To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet.>To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV