Last week, I wrote how smaller companies tend to outperform when the U.S. Federal Reserve cuts rates. These firms are naturally riskier, and so having cheap money makes them more likely to survive.
This week, InvestorPlace Senior Analyst Louis Navellier points out that there’s another force pushing stocks higher: A mega-cycle that’s being encapsulated by AI.
That’s why he’s forecasting a seismic change in the U.S. economy, where knowledge workers and blue-collar ones will be replaced by increasingly smart machines.
Fortunately, there’s still time to prepare. By combining the predictable cycle (small-caps outperforming) with the mega-cycle (AI companies dominating), it’s possible for people to invest with the flow, instead of against it.
And so, this week, I’ll be talking about three small-cap AI stocks that look set to surge in 2025.
This post originally appeared at InvestorPlace.