Mitigate Risk by Buying Small-Caps in Bunches

Microcaps are the most volatile asset class. Best to buy smaller-caps in bunches. The proverbial “Don’t put all your eggs in one basket,” is a cardinal principle when investing in speculative stocks. Even the most promising, well-researched companies sometimes throw investors curve balls, causing stocks to retrace gains and putting a stay on big returns for years. With a basket of smaller stocks, you mitigate risk, balancing your portfolio with stocks that may be in an upward trajectory while others may be flat.