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August 4, 2014

Why petit — not small — stocks are hot now

  • Through the first half of the year, Morningstar said investors plugged $5 billion into foreign small- and mid-cap stock mutual funds, nearly five times as much as they put into their U.S. counterparts.
    • By STAN CHOE
    AP Business Writer

    NEW YORK — Small-cap stocks are getting the cold shoulder, unless they come with a nice accent.

    Stocks of smaller U.S. companies have dropped this year following a spate of warnings that they've become too expensive. But investors continue to buy stocks of smaller companies based in Italy, South Korea and elsewhere outside the United States. Like their U.S. counterparts, foreign small-cap stocks offer the potential to profit from big growth. Unlike them, foreign small-cap stocks generally come with lower price tags, though they come with their own risks.


     
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