The market has been harsh on most growth stocks this year, owing primarily to tariff-related recession fears.
In a volatile market, small-cap stocks, which are often considered riskier than their large-cap peers, tend to be overlooked. These are shares in companies with a small market capitalization, usually between $250 million and $2 billion. Small-cap stocks are more volatile than larger-cap stocks because they are often in the early stages of growth and lack financial stability. However, they have the potential to generate higher returns if the underlying business achieves its full potential.
