Because since April 2000 the value of the S&P 600, the index that tracks small-cap “penny stock” companies, has roared up 117%!
Remember, in the very same time span…
…pricey household-name stocks destroyed $9.6 trillion dollars of hard-earned wealth.
Yet, unknown to most investors…
Best part: this is nothing new. Jaw-dropping profits have been secretly flowing from penny stocks for decades.
Investing historian, Tom Gardner, states that small-cap stocks, “…have substantially outperformed the overall market over the past 40 years.”
That’s right — these under-the-radar stocks that sell for less than $5 a share—and often for literally pennies—have been the most explosive investments in any portfolio since back in the good ole’ days… when gas was only 36 cents a gallon… and a visit to the Exxon didn’t feel like a mugging.
I know what you’re asking though…
Great question with an easy answer.
Penny stocks remain Wall Street’s most forgotten wealth-creator because they are too “small” for the big investment banks to bother with.
Investment banks could, in theory, buy millions of penny stock shares at once. However, if they did a problem would arise.
Their big order would skyrocket the share price, stealing their potential profits.
That’s why the big banks are perennial wallflowers at this secret profit-party.
And since the financial media are in the pockets of the big banks, they don’t point their cameras anywhere near this market. The banks would rather have you put your cash into the stocks they all but control.
No wonder so few people know about penny stocks or take advantage of their dizzying ascents in price.
And, I believe…
How different would life be today if you’d got in early on goliaths like Cisco, Microsoft, Dell and Wal-Mart when they were little-known upstarts?
You know the answer to that question.
Early investors in these Wall Street darlings live high off the hog, financially set for the rest of their lives.
But only because they acted before the investing masses jumped on… and shot the share price from dirt-cheap to downright extortion!
It’s safe to say, these high-priced old-hands have seen their best days when it comes to giving investors explosive paydays.
Penny stocks, however, have math firmly on their side when it comes to lightning fast gains…