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If You Want To Buy The Dip, Small Caps May Be Your Best Bet

August was another month of upside rip for stocks with the S&P 500 up 2.05% to new record highs. But the month ended, and September began with a dip.

But it’s too soon to say for certain if the Labor Day dip is just the start of a deeper pullback, or if it is just another wobble in an overbought market that is soon followed by new highs.

But if you are looking for buy-the-dip opportunities, and assuming we finally get a decent one this month, small-cap stocks may be the best place to prospect for two reasons.

This post originally appeared at Trades Of The Day.