VB: Patience Will Eventually Pay Off

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Summary

  • VB provides exposure to a basket of small publicly-listed businesses. This ETF is very well diversified both across issuers and sectors.
  • Small-caps have historically outperformed large-cap stocks, and many are wondering if the recent correction offers an attractive buying opportunity.
  • Since volatility will probably remain elevated over the next 18-24 months and the 2023 economic outlook is bleak, I am bearish on VB's short-term prospects.
  • I strongly suspect that the next 12 months will be filled with numerous opportunities to buy VB at lower prices.

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Investment Thesis

For the previous 90 years, small and mid-cap stocks have outperformed large-cap stocks. However, during shorter time frames, especially during market downturns, these two groups have repeatedly lost momentum. While I remain optimistic about the growth prospects of small caps

This article was written by

794 Followers
About me: Value-oriented investor, seeking low-risk investments with the potential to deliver high returns. I like to analyze commodities, ETFs, and cash-flow positive businesses that have a moat and growth opportunities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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