A Micro-Cap Disaster

Perhaps because they have been in the investor doghouse for so long the fact the micro-cap stocks are among the biggest casualties of this bear market has received little attention.  Still, it’s worth noting that the market for micro-cap stocks is in the worst shape that I can remember in my more than 35 years of experience on Wall Street.  You can tell that things are bad for this sector when a micro-cap company announces good news and the stock has no upside move.  In fact, for some the unfortunate companies we follow good news has actually led to downward moves.  I quite honestly don’t know what will turn the situation around, but be assured that if it continues the American economy will be the big loser. 

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