Small-cap stocks: Riskier, without a doubt. But time to be contrarian? 6 small-caps from different sectors to keep an eye on
Why look at small-caps when there are many large-cap stocks available at decent valuations? But then, a counter-question: When is it a good time to buy small-cap stocks? When they are rising every second day? Or when there is a correction and the commentary is all negative? The answer is obvious. In early 2024 or before that, in 2023, you could pick almost any small-cap stock and be a winner. That will not happen any more. So, avoid “narrative stocks” and stay away from those with high valuations without matching earnings growth.