Hello everyone! Today i want to share some trading ideas with you!
1.
Small-caps are dying. $iShares Russell 2000 ETF(IWM)$
The Russell 2000 has consistently lost ground to mega-cap companies over the past 20 years.
Digital technologies, most notably the Internet and mobile, are increasingly turning markets into winner-takes-all environments.
The Internet enables massive network effects, which are further reinforced by mobile as it drives frequent daily usage.
Companies benefiting from this, like Meta and Spotify, become so large and profitable that they can invest even more in the next big thing or expand into new markets.
These massive investments allow them to leapfrog competitors in other markets.
As a result, most markets are becoming winner-takes-all, or at least winner-takes-most.
This trend won’t reverse anytime soon.
Long mega-caps.
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