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With Grocery Prices Soaring, This High-Tech Food Play Belongs on Your Shopping List

Aside from the continued sell-off in U.S. tech stocks, one of yesterday’s top financial news stories was the fact that U.S. inflation is accelerating – and at a pace that’s exceeding forecasts.

And the surge in food prices is one of the big catalysts…

  • Featured Story

    IWM, VB, FYX: Three Ways to Ride the Rally in Small Cap Stocks


    A recent surge in small cap stocks - companies with a market capitalization of under $1 billion - means individual investors should be placing at least a few of their chips in the small-cap arena.

    In fact, the rally has pushed the Russell 2000, an index of 2,000 small cap stocks, to within shouting distance of record highs.

    The benchmark has climbed a whopping 34% since its lows in early October and is within 5.8% of its closing high of 865.29 set back in April.

    By comparison, the Dow Jones Industrial Average, which earlier this month hit 13,000 for the first time since 2008, is still 7.9% from its record high in October 2007.

    Yet many investors haven't been around to enjoy the ride.
    Since the end of April 2011, small-cap mutual funds have seen $15.9 billion in outflows, and small-cap exchange-traded funds (ETFs) have seen $4.4 billion withdrawn.

    That's probably because large-cap stocks outperformed their smaller brethren posting an 8.5% premium over them from April through September.

    According to CBS News, investors have been voting with their feet, yanking money out of small-cap mutual funds in 37 of the 40 weeks since May.

    But so far in 2012, that trend has begun to change.

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  • mid-cap stocks

  • Mid-Cap Stocks Could Be Ready to Reverse Course Mid-cap stocks were one of the hottest investments of the past year until recently.

    That is clearly exemplified by the iShares S&P MidCap 400 Index (NYSE: IJH), which jarred investors by sinking 2.3% over the past three trading days. The exchange-traded fund (ETF) had shot up 33% in the 12 months prior.

    But the good news is that a reversal could be in the making.

    That is, the sharp decline of the past few days may have helped to set the right shoulder of an inverse "head-and-shoulders" pattern. This is a classic reversal pattern that tends to occur at the end of major declines. You can see for yourself on the accompanying chart.

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