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Capital-gains favorites for 2012


Unprecedented volatility has pushed correlations on small-cap and midcap stocks well above historical norms, making it hard to swim upstream with individual stock picks. That’s the bad news.

The good news: The high correlations indicate that company-specific strengths have been overshadowed by such big-picture worries as a possible recession and the debt crisis in Europe, so patient investors buying shares of well-positioned companies should ultimately be rewarded.


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