...In general, the mature public corporations have no limit up and money is pouring into the US market. A strong dollar and fallen resource and oil prices have created every indication of a very top heavy equities market. Let's look at the stock market as if it's a volcano and lava is cash. The rise in the market resembles the rise in lava to the top of volcano, which ultimately blows out and lava, or cash, starts to flow downward. The lava, or cash, runoff runs down and finds its own level on lower ground and in this case lower markets and in particular: microcap stocks.
As the lava flow, or cash flow, grows from profit taking, the microcap market has open arms as investor interest into microcaps is growing rapidly. The capital formation growth, represented by IPO's, ATMs, RDs, and S2 registrations - cash for growth is coming into the market.
It's starting to look a lot like a major bull market beginning in microcaps. which will soon be reflected in increasing volume and liquidity. Growing transparency and market awareness is attracting new investors in droves. Next-gen investors are stepping in to the microcap market as social media provides information and creates a knowledge forum to tap into for education and understanding.
The higher the markets go the more attractive they are to new investors. The low-priced emerging growth companies also contain companies with young social-minded management teams and business models that next-gen investors relate to as well.
Young investors are curious, careful and studious. The majority of them are looking for a long term hold, making them patient and loyal shareholders, and excellent investors. As the lava/cash flow meets the microcap market and the next-gen investors seek low-priced emerging growth companies - a serious bull market has taken its first steps.
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