Small Caps to Outperform?

Published on
June 22nd, 2018
11 minutes

Small Caps to Outperform?

Trade Ideas ·
Featuring Jay Pelosky

Published on: June 22nd, 2018 • Duration: 11 minutes

Jay Pelosky, founder of TPW Investment Management, says that as fears related to trade and tariffs grow, one specific small-cap ETF is an attractive buy at current levels. In this interview with Brian Price, Jay cites earnings growth and strong valuations for several small-caps funds as the key catalysts for his thesis. Filmed on June 18, 2018.


  • CL
    Chris L.
    25 June 2018 @ 16:05
    Well, if you loved IJR on June 22 (.11% from it's all-time high), you'll love it careening lower through $84.
  • IC
    Ibrahim C.
    24 June 2018 @ 04:53
    What I do not understand, most of the trading ideas here in RV have come about somewhat at their peak and about to reverse their trends. When few of them went well in their way (except the previous Aspen ones), they were well recognized, but what about the whole spectrum and their winning rate as a whole after launching this show? It is very significant to know how much these ideas have achieved per year per category etc.? This one is also very speculative having understood all the fundamental backdrop. I am not a perma-bear, but the incredible rise in small caps has all been so formidable when you think that 40% of their stocks are junks and having negative EBITAs and another 40% are composed of financials which could easily bust when people will remember the US fiscal problems back again. Can you please tell me what portion is left to drive it upward to the sky?
    • CL
      Chris L.
      25 June 2018 @ 16:03
      That's because RV indirectly justifies their low pricing by holding material. It'll eventually bite them. Think Tank does this. Research is sometimes weeks old. I cringe every time I watch that corn trade idea. Unless pieces are published the day of filming or receiving, it's merely a supplemental product. Nothing to real drive one's investing.
  • NH
    Neil H.
    22 June 2018 @ 21:24
    Buy at 83 sell at 82 please explain that strategy to me
    • SP
      Steve P.
      25 June 2018 @ 05:01
      ...Stop loss at $82 - buy down to $83.
  • DR
    Daniel R.
    24 June 2018 @ 04:27
    “Strong valuations” is a new term for me. Do you mean momentum, RSI, or low PEG? This would help me know if this is a good investment for my investment style, which is not momentum but GARP. Thanks!
  • KC
    Kenneth C.
    22 June 2018 @ 13:23
    Not a criticism of others, but I too really like the succinctness to Brian's style of interviewing.
  • RK
    Robert K.
    22 June 2018 @ 13:11
    Thanks for the interview. I strongly disagree with the timing of the thesis. Technically this is literally the worst time to enter this trade. 1. The historical spread against S&P is at significant extreme. 2. All the macro risks, if manifested, will hit exactly the small caps the strongest (in spite the relatively higher industrial exposure positioning). So yes, this was a good trade 3 months ago.
    • RK
      Robert K.
      22 June 2018 @ 13:12
  • SS
    S S.
    22 June 2018 @ 12:43
    Brian, you are doing a great job, keeo it up.