While tech behemoths rebounding from battered levels made headlines Monday, many smaller stocks quietly set records. The Nasdaq's rebound off its lows has gotten a lot of attention, but the index is still less than half of its March 2000 high. The real leadership is coming from smaller stocks that are hitting highs, including energy stocks, retailers and financials, Minervini says. Money that once flowed only to tech stocks is looking for a new home. Five rate cuts by the Federal Reserve have enabled small, nimble companies to borrow money more cheaply, boosting profit growth, Pradhuman says.
History also favors small-cap investors.