Citi Research Sees Safety In Small Caps

The typical “flight to safety” investments have been strong performers since the Brexit vote caught the world off guard last week. The iShares Barclays 20+ Yr Treas.Bond (ETF) TLT 0.77% is up 5.5 percent, and the SPDR Gold Trust (ETF) GLD 0.41% is up 4.4 percent, while the SPDR S&P 500 ETF Trust SPY 1.7% has plummeted 4.2 percent.

Citi analyst Scott Chronert believes he has identified a post-Brexit safe haven stock play that is far from typical: small caps. According to Chronert, Citi is predicting a correlation to develop between the U.S. dollar and small cap stocks. Despite the Brexit fallout, the firm maintains its 1200 year-end price target for the Russell 2000.

“Considering the 2012 circumstance, we expect…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and is always available on your local internet!