Small Value Stocks Returned Nearly 40% More During Periods of Expansive Monetary Policy | 2 stocks we like

New evidence shows "small value stocks returned nearly 40% more during periods of expansive monetary policy than during periods of restrictive policy" (VIEW LINK). Australia is currently experiencing a period of expansionary monetary policy whilst the USA is looking to shift its stance to a restricted monetary setting in September. We believe Aussy Small Caps will be the first to benefit from this favourable monetary setting, whilst also being internationally exposed. We hold (ASX:LOV) which has a strong overseas footprint. Lovisa is a fashion jewellery manufacturer that listed at the end of 2014 at $2.00, and is now trading at $3.33. LOV has operations in 8 countries with over 230 stores and plans for further expansion. (ASX:VTG) on the other hand doesn't have international earnings, but has been a strong winner this year. With strong growth in dividends, EBITDA and revenue, Vita group has been a solid performer. We like the segment and the progression of the business from a small phone retailer to a much bigger business as a result of dynamic management. (VIEW LINK)