Small-Cap Stocks: Your Best Rebound Bet

Want to position your portfolio for the recovery? Then fly in the face of the crowd calling for big-cap equities.

So says William Greiner, chief investment officer of UMB Asset Management. He told CNBC he believes the U.S. is already in a recession -- and says the best thing to do is buy small-cap stocks.

"When you look back over the last 10 recessionary environments, what tends to lead back on the upside is small-cap equities," Greiner said.

  • Learn more: Watch the entire interview (2 mins, 45 secs)

The CIO goes against the tide of those recommending financial giants like JPMorgan and Bank of New York . "Taken one by one," there are better buys to be had in local/regional banks, he says.


Commenting on an earlier CNBC interview with First Niagara Bank CEO John Koelmel, Greiner says that that consumer-banking company is one worth considering -- though he cautions that "quality is always the key."

Small-cap banks that compete with First Niagara include KeyCorp and M&T Bank .


Disclosure information for Greiner was not available.


Contact Stocks


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More