Small-Cap Gains from Unlikely Places

We are six trading days into August now. It hasn’t been a good start to the month.

The Dow Jones Industrial Average is down 3.49%. The S&P 500 is 3.48% lower and the NASDAQ is in the red by 2.57%.

Aussie indices haven’t been spared either.

The S&P/ASX 200 is down 2.18%. And the small cap index in Australia, the S&P/ASX Small Ordinaries, is lower by 2.40%.

Like I said, it hasn’t been a good start to the month…

This doesn’t necessarily mean that this August will be a lousy month for Aussie stocks. But the odds are stacked against you if you want to finish in the black at the end of the month.

However, falling share prices aren’t always bad news.

Many investors can use market dips like this to pick up shares they normally would think were too expensive.

It’s important to remember that when the massive companies are dragged down by the market, the little guys tend to cop an even bigger beating.

Believe it or not, this can be good news for you.

Let me explain what I mean.

Read the rest of this article at Money Morning