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Israel Rejects Trump's 15-Point Plan to Disarm Hamas The New York TimesNetanyahu rejects Board of Peace's Gaza plan: No 'withdrawal until Hamas is genuinely disarmed' Fox NewsIsrael rejects Trump's 15-point plan for Gaza, Netanyahu says NBC NewsNetanyahu Rejects US-Backed Proposal for Hamas Disarmament Bloomberg.com
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Iran-US war latest: Trump's military chiefs ‘push to speed up weapons production' amid Hormuz deal deadlock independent.co.ukThe U.S. Is Burning Through Weapons in Iran. Russia and China Are Taking Note. The New York TimesPentagon pushes defense companies to boost weapons production after concerns of depleted stocks AP NewsPentagon presses defense firms to build weapons as Iran war depletes stocks The Washington Post
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Boat captain arrested after vessel capsizes near Statue of Liberty, killing woman and child NBC NewsMother, child killed when boat overturns off Liberty Island ABC7 New YorkWoman and 5-month-old dead after vessel overturns in New York Harbor CBS News2 Die After Boat Overturns in New York Harbor, Police Say The New York TimesM
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How much sunshine do we really need? BBC?Taking vitamin D every day but still running low? Doctors explain what may be stopping your levels from rising? The Times of IndiaBe cautious about sun exposure, but don't forsake it Scranton Times-Tribune
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China's monthly inflation cools as impact from Iran war eases Financial TimesChina Inflation Cools More Than Expected in July WSJChina July factory-gate inflation eases to 3-month low, CPI slows ReutersChina's factory-gate prices growth slows to 3.5% in July amid lower fuel prices South China Morning Post
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Pentagon pushes defense companies to boost weapons production after concerns of depleted stocks AP NewsThe U.S. Is Burning Through Weapons in Iran. Russia and China Are Taking Note. nytimes.comPentagon said to ask US arms firms to speed up output as Iran war exhausts supply The Times of IsraelTrump, Hegseth clashed at Camp David over Iran missile depletion concer
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Among the lowest-priced investing options this fall are small cap stocks - often defined as companies whose total market capitalization (stock price times number of shares) runs from $300 million to $2 billion.
The Russell 2000, an index that tracks the 2,000 smallest public companies, was trading at a price-to-earnings ratio, based on estimated earnings, ranging from 15 to 20 this summer, the lowest range in more than a decade. That discount is one big reason Ed Clissold, Chief U.S. Strategist for Ned Davis Research, turned bullish on small caps this summer. "Small-caps could be in the early stages of a multi-year run of outperformance," he says.
History is certainly encouraging. The sector strongly outperformed the last time small cap stock prices were so low - in the run up to the 2001 recession. If you bought a fund tracking the Russell 2000 index around the March 2001 start of that recession, by March of 2005 you'd have gained a cumulative total return of 42%. The large cap Russell 1000 index had only started recouping its losses by then and was up just 6%.
There are plenty of other reasons to take a flyer on small caps. Clissold believes they will disproportionately benefit from trends such as deglobalization and a strengthening dollar because small caps tend to be more U.S. focused. And several academic researchers have found that over the very long run, small cap stocks tend to gain more than those of large companies.
All this might make savvy investors suspicious: If that's all true, why are small caps so unloved now?
Four big reasons: Small caps are more volatile than
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