The Great Stock Market Rotation - Will Small Caps (Russell 2000) Rally More?

[@TheIntelligentInvestor]

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[@qih8955]

Great video, just in time for clearing up my confusion for small caps. Thank you Victor!

[@dondonnysson4973]

I feel like the key is rotating into select small caps that have potential for high growth and profitability, not buying a small cap index.

[@TheIntelligentInvestor]

Yeah, that is the hard part, picking the good small caps. Most small caps are mediocre or below average businesses. Only few of them are great businesses. The good ones become too big, then they leave the small cap index and join the S&P 500 (eg Super Micro).

[@thierrycottiels4201]

Thanks very much.

[@EpicContentByKD]

Thanks. Great content! Is it possible to download the intrinsic value spreadsheet?

[@TheIntelligentInvestor]

Yes only for Patreon members.

[@lassmirandadennsiewillja7537]

Thanks for sharing all the valuable information. My elf beauty performance in recent days confirms the message ;D

[@TheIntelligentInvestor]

Yeah. I think it’s safer to bet on the highest-quality companies (mostly large caps) and wait for dips than betting on the much smaller companies that appear to be very cheap. But I expect the market (S&P 500 and Nasdaq 100) will broaden more and continue to reach new highs at least this year and possibly next year.

[@Sko71]

Great video

[@BhaveshPatel-kx1ql]

Tesla is also developing robots with Project Optimus. Doesn't this suggest that it's still undervalued since robotics, as with AI is poised for significant growth over the next 5-10 years? Or, are you only going to reconsider once we hear more about Tesla's robot developments?

[@TheIntelligentInvestor]

I think it’s too early to quantify Tesla’s Optimus Bot’s market potential. There’s just no data now. But based on Tesla’s EV and energy businesses now, I think it’s overvalued after the recent rally. But Tesla’s value will go up once they start selling humanoid bots at scale. I’ll buy back Tesla once it’s undervalued again.

[@qih8955]

@@TheIntelligentInvestoryou mentioned in earlier video that you would sell TSLA when it approaches $1T and swap for other companies. Have you already sold TSLA?

[@TheIntelligentInvestor]

I have been selling Tesla gradually since it has recovered a lot and took some gains. So I sold my remains Tesla shares a few days ago (I may regret selling too early). But I’ll buy back Tesla once I think it’s undervalued again.

[@FA-nr7yx]

@TheIntelligentInvestor Hey love your content! Do u ever sell or purchase call or put options? How long have u been investing in stocks for?

[@TheIntelligentInvestor]

Thanks for watching! I don’t do any options. Just keep buying the dip, and keep buying and holding the best businesses.

[@Drizzydid]

This video was inspired by ASML earnings market reaction? Or you made this even before then? Solid topic either way - what’s your outlook for Asml based on today’s earnings, how it’s looking to affect the other semis, and the sentiment about China restrictions? Or are you already making a new Asml analysis video based on today’s earnings?Thanks.

[@TheIntelligentInvestor]

I made this video before ASML's earnings. ASML's business is outstanding with growing backlogs more than analysts' expectations. There will be more trade restrictions on ASML going forward but it'll mainly be on the high-end DUV lithography systems. Also, Trump commented about Taiwan today, and it made all the semiconductor stocks dropped a lot. I think the market is just overacting (I have seen this so many times in the past). I'll likely make an updated video about ASML either this month or early next month.

[@Drizzydid]

@@TheIntelligentInvestor thank you for the reply. I agree about the overreaction. I almost thought to add Asml position today but because tsm earning tomorrow I think I will wait until after that because most likely tsmc will cause semis to go lower even more because of trump’s comments so I think this could be a good week for adding to positions based on this reaction.

[@gavin2730]

Any opinions on Visa/Mastercard's long term business prospects relative to the N100 and SP500? Visa's offices were just raided in Japan today. Lots of domestic and international pushback lately against the duopoly

[@TheIntelligentInvestor]

I have both Visa and Mastercard. Their payment network businesses are irreplaceable even though they’re essentially monopolies if you combine their market shares. All these recent news are just noises. Just my option (not advice): I think focus on the business is much more important and take advantage of any large dips. The fundamentals have not changed. It’s nearly impossible for competitors to duplicate their business models and payment networks.

[@gavin2730]

@@TheIntelligentInvestor thanks for your thoughts!

[@user-ll9qk2el4d]

I bought some Russell 2000 ETFs in anticipation of a short-term gain. I agree with you that small-caps is not something I want to invest in for the long-term. I think investing in dividend-growth ETFs, such as SCHD, is a better choice in an economic slowdown. Small-caps will initially benefit from lower interest rates but will struggle when consumer spending slows. Tech stocks have been punished lately. NVDA is down another 4% today after a sell off. Can I get your thoughts on your strategy for NVDA? Do you plan to hold or take some profits before the next earnings report?

[@TheIntelligentInvestor]

Yeah, I'm planning to keep buying Nvidia more over time whenever it dips and hold it for the long term. I don't trade stocks. All the semiconductor companies (including Nvidia) are down today because of Trump's comment about Taiwan. The market is just overreacting. I'm not too worried about it.

[@user-ll9qk2el4d]

@@TheIntelligentInvestor Ouch. It's days like this that tests your resolve.

[@TheIntelligentInvestor]

Yeah I have been through so many corrections. Today is just a dip:) HOLD:)

[@user-ll9qk2el4d]

​@@TheIntelligentInvestor It's reassuring to know that someone like you feel the same way as I do. You and I hold many identical companies, and nothing fundamentally changed about them. Even after the recent corrections, I still gained a decent return. I'm hoping for things to stabilize in the next few trading days, but this thing could drag on a little longer until the next news cycle.

[@AroResGaming]

Sir, so you never sell any stock or ETF? Ever? Great video, love your content

[@TheIntelligentInvestor]

Good question, I do sell from time to time when a stock is substantially overvalued and if I can reinvest the capital in other outstanding businesses that are undervalued. For example, I sold more Tesla shares recently and took some gains.

[@AJ-ww1ef]

Can you do UBER please?