The pandemic has been a tough slog for many stocks over the last year or so. A variety of sectors and industries have been hit hard as we’ve clamped down, worked from home and experienced economic hardship. But as a whole, none have been hit harder than small-cap stocks.
As investors flocked to the biggest of the big for protection during the strife, small-caps have spent much of the year lower. Perception is that these firms with their smaller revenues, profits and size would have a hard time navigating the challenges of the post-coronavirus world.
Well, that couldn’t be farther from the truth.
The reality is, many small-cap stocks are still winning during the pandemic and now offer some incredible bargains as well as strong dividends. Meanwhile, recent changes to the geopolitical and economic landscape has lit a fire under the market segment. For investors, thinking small could be the best play heading into the new year.
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