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Midyear capital-gains favorites


After nearly 14 months of chasing the riskiest and most speculative stocks, investors gained a renewed appreciation for risk over the past two months. Especially among small stocks, shares of the flimsiest companies and those most dependent on expectations of robust economic growth have been hit hardest in the pullback. By comparison, shares of companies with the best track records, operating momentum, and finances have held up well.

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