Risks & Small-caps: Narrative or Real, Best or Worst, Timed or Time? 5 stocks & 7 principles for investors looking at small-caps

At about this time last year, everyone from regulators to policymakers to masters of the market were cautioning against exposure to small-cap stocks. Did anyone pay heed? Probably not. Today, a large majority is feeling the pinch. There is an inverse relationship between many elements of the stock market and it is more complex than what we assume it to be. So, as small-caps see their worst performance of the last few months, it’s probably a good time to look at the logic of investing in the segment. Remember: Just because they are small-caps, they are not all bad. At the same time, when there is euphoria, all of them don't become good