How do you make sense of the current market conditions? We came off a strong bull year for stocks with the worst January in a long time – but the month ended, and February started with the best two-day action since April 2000. And in a quirk, that investors should note, small-cap stocks are showing strong signs of being heavily oversold.
Small-caps took a harder hit in January’s swoon than the market giants, and according to JPMorgan’s Chief Global Markets Strategist Marko Kolanovic, investors should buy the dip.
“Small cap valuations are at 20Y lows, and investor sentiment is bearish. Many market metrics such as recent performance of high vs. low beta stocks and valuations of small caps are already fully pricing in a recession – something we do not see materializing,” Kolanovic noted.
Against this backdrop, we used TipRanks’ database to locate several oversold small-caps that…
