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Don't Miss This Opportunity To Become A Winning Investor In 2022 And Beyond!

Dec. 27, 2021 10:28 AM ETAAPL, BTC-USD, DLHC, ETH-USD, GOOG, GOOGL, MSFT, NVDA, TSLA
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Summary

  • Big tech and S&P 500 investors have been the clear winners of 2021. Meanwhile, small cap stock pickers have faced a very challenging year.
  • Stock market history proves us that these developments are unsustainable. To win in 2022 and beyond, you will need to follow a much different strategy.
  • In this blog post, I will provide you this strategy to find the best investment opportunities for 2022 and beyond.

Dear fellow investor,

The year 2021 is coming to an end. I hope you are enjoying this valuable time with your family and friends.

At the surface, it looks like it has been a very normal year.

The S&P 500 gained 27.7% and experienced only one 5% dip during the year. Volatility has been low with the VIX-index mostly hovering below the 20-level. 

Nonetheless, many investors have faced tremendous challenges with their portfolio during the year.

How can this be explained?

The Covid-19 pandemic and the resulting monetary stimuli by the FED detached the stock market from reality.

All money flew into big tech and crypto, which were seen as beneficiaries during this period:

Meanwhile, investor appetite for undervalued small caps sank to levels not seen in a long time. This led to a significant divergence in performance.

The Russell 2000 small cap index gained only 15.2%, underperforming the S&P 500 by 12.5%.

710 out of 2000 small caps even saw negative returns and 199 halved in value last year.

Big tech and ETF investors were the big winners of the year, while small cap stock pickers were the losers.

But this will change dramatically in 2022...

Due to its recent relative underperformance, small caps are trading at their lowest valuations in the past decade (14.4x), while large caps are trading at their highest (20.7x).

This is a significant contrast compared to history, during which small caps mostly have been more expensively valued.

We need to go back to 1999-2000 to see such relative undervaluation of small caps.

(Insider Opportunities based on Yardeni and Finance Yahoo data)

And you know what happened back then...

Large caps were sold off, leading to a bear market for the S&P 500. Meanwhile, undervalued small caps were rediscovered and performed well.

Here is what happened with $100,000 invested in the S&P 500 (large caps) and S&P 600 (small caps) in 2000/01/01:

  • S&P 500: $100,000 turned into $84,955 in 6 years
  • S&P 600: $100,000 turned into $198,267 in 6 years

From the start of one of the biggest bear markets in modern history, investors who would've invested in the small cap index doubled their money in six years! Smart small cap stock pickers would've even performed better.

We strongly believe that today, we are setting up for a very similar scenario. 

Big tech/S&P 500 investors will become the losers of 2022 and beyond, while small cap stock pickers will turn into the winners.

It is time for you to choose which group you want to join...

Find The Winners Of Tomorrow

But today, investors like you and me need to be more careful than ever with stock picking.

The financial future of many companies looks highly uncertain with rising inflation and declining demand now that the stimuli tailwind is easing.

Fortunately, our investment service Insider Opportunities has developed a unique stock picking strategy which is extremely valuable for this environment.

We only purchase stocks which insiders buy heavily. Insiders are the CEOs, CFOs, board members, etc. of the firm. They are oftentimes called the "smart money" as they know better than anyone else how the company is performing and how bright its future looks like.

In addition, we adopt our proven in-house algorithms to only pick out the most undervalued, highest quality stocks out of all insider purchases (30/day).

Via this unique double-layer strategy, our members confidently find the winners of tomorrow before the market discovers them.

Once these undervalued investments get rediscovered, the gains can be phenomenal.

For example, one of our highest-conviction insider picks at the end of 2020, DLH Holdings (DLHC) just surpassed 100% gains today after gaining 45% in December alone.

That's not a coincidence. The stock got bought by three insiders and picked by our IO Golden Value Algorithm (which historically tripled the S&P 500 return). As DLH Holdings reported fantastic earnings during the year, investors rediscovered the stock which was trading at a very cheap 6x free cash flows.

(Source: Insider Opportunities with Tradingview)

Luckily, not all our investments have gained this much so far. Some have been caught in the weak momentum surrounding small caps, creating strong opportunities today.

In fact, we currently have 12 strong-buys in our Current Recommendation List which we believe are set to generate strong returns in 2022 and beyond.

Don't Miss This Opportunity!

Hundreds of investors like you believe in the power of insiders to improve their long-term returns in the stock market. We sincerely want you to try it out now, given today's extremely challenging market environment.

Therefore, we provide you the opportunity to try out Insider Opportunities with a 14-day FREE trial. 

You'll get exclusive access to

  • Our Insider Outperformance Portfolio
  • The due diligence on our highest conviction stocks (currently 13 strong buys)
  • Insider Masterclasses
  • Weekly updates and weekly top insider opportunity stocks
  • Chat room
  • ...

And next week, we'll publish our extensive 2021 Annual Report, which many investors are looking forward to.

But don't hesitate to sign up...

The recent challenging market environment led to unseen demand for our services. As such, we are forced to raise our prices by over 20% on Friday January 7.

If you sign up for a free trial before that date, you will be charged the lower price. And in the future, you will always pay this low price, no matter how many times we'll raise the cost for new members.

We are looking forward to welcoming you.

Analyst's Disclosure: I/we have a beneficial long position in the shares of DLHC either through stock ownership, options, or other derivatives.

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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