Looking Beyond Today's Favorites

Although this article was written during the World Cup, its message has little to do with soccer—and everything to do with investing. The tournament simply provided a timely reminder of a lesson investors have learned time and again: tomorrow's winners are rarely obvious today.

Today's headlines tend to focus on a handful of familiar companies, the latest market trend, or whatever investment is capturing the most attention. Yet some of the market's most compelling opportunities are often found where fewer investors are looking.

We think of small-cap stocks as the market's uncommon goods. They rarely dominate the financial news, but they represent thousands of innovative businesses with the potential to become tomorrow's leaders. Rather than trying to predict which company, sector, or country will lead next, we believe investors are better served by owning a broadly diversified portfolio that includes these often-overlooked areas of the market.

This article is a timely reminder that the next great investment opportunity is often found in places the market isn't paying much attention to today. That's why diversification matters—it helps position investors to benefit from tomorrow's winners, wherever they emerge.

This material is provided for informational and educational purposes only and should not be construed as investment, legal, or tax advice, or as a recommendation to buy or sell any security. Investment advisory services are offered through Keating Financial Advisory Services pursuant to a written advisory agreement.