Got $5,000? These 3 Small-Cap Stocks Can Double
Investing in 2020 has not been without its challenges. The unprecedented coronavirus disease 2019 (COVID-19) pandemic led to historic levels of uncertainty in the market. During the first quarter, this uncertainty resulted in the fastest bear-market plunge of all time. Yet, when things come to a close in 15 days, the benchmark S&P 500 will probably be up by a double-digit percentage.
While many facets of the market have participated in this broad-based bounce, small-cap stocks have been left in the shadows. The S&P 600 SmallCap Index is trailing the S&P 500 by a full seven percentage points in the return column on a year-to-date basis.
However, that could change in a big way in 2021. The rollout of coronavirus vaccines, coupled with historically low lending rates, provide a favorable environment for higher-growth (and higher-risk) small-cap stocks to thrive. If you have $5,000 at the ready, consider putting that money to work in the following three small-cap stocks, all of which have the real potential to double.
Source Fool.com
