Published on 27 Mar 2024 on Insider Monkey via Yahoo Finance

Corporate Insiders Are Selling These 10 Small-Cap Stocks

In this article, we will take a detailed look at Corporate Insiders Are Selling These 10 Small-Cap Stocks. For a quick overview of such stocks, read our article Corporate Insiders Are Selling These 5 Small-Cap Stocks.

When the inflation crisis started and the Federal Reserve began raising interest rates, investors were quick to exit small-cap stocks which are deemed risky in a belt-tightening environment. Small-cap stocks started to rebound in the last quarter of 2023, when the AI-led rally pushed the broader stock market high, crushing all recession-related worries. The Russell 2000 Index jumped 14% in the fourth quarter, surpassing the large cap-focused Russell 1000 and mega-cap Russell Top 50 Indexes in the period.

Tom Lee, the Managing Partner at Fundstrat Global Advisors, is one of the market experts who are bullish on small-cap stocks for 2024. Recently, while talking to CNBC, Lee said that he expects the Russell 2000 to jump by a whopping 50% in 2024 and cross 3,000 for the first time. Like many others, Lee’s thesis is that when the Federal Reserve begins to cut rates, investors will flock to smaller, growth-focused companies for long-term gains. Investment management company Lord Abbett also shared similar optimism around small-cap stocks in a report published in January: