Small-Caps and Bonds Positioned to Outperform in 2023 According to Analysis
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Small-cap stocks are trading at attractive valuations compared to large caps and could outperform in 2023, with potential for 50%+ gains.
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Fixed income yields are much higher than a decade ago. As rates fall, bond values could rise significantly.
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The Vanguard Extended Duration Treasury ETF invests in long-term bonds with high sensitivity to rate changes. It could benefit as rates decline.
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Value stocks tend to gain more than growth when rates fall. The Vanguard Russell 2000 Value ETF focuses on small-cap value names.
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The article sees potential for both small-caps and fixed income in 2024, making the two Vanguard ETFs potential winners.