The market for small- and micro-cap stocks could not be worse, making it an ideal time to invest in penny stocks at attractive valuations.
Inflation, for one, has been weighing on these volatile stocks, as they struggle to reckon with an increasingly prohibitive capital raising environment.
Given the economic slowdown being induced by the Bank of Canada’s rate hikes – which are meant to slow inflation, but have yet to affect high food prices – investors are also showing a preference for safer assets, such as higher-yielding cash accounts or broad-market bond index funds, before another bull market beckons their capital off the sidelines.
Consequently, higher-risk assets such as small- and micro-cap stocks are being ignored, despite price-value dislocations, creating compelling opportunities for savvy investors to capitalize on.
To usher readers into the weekend, here are three promising penny stocks to…
