warning signs of small-cap stocks overheating
The small-cap stocks is beginning to show signs of overheating. According to V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, some of the biggest mutual funds in the small-cap market have ceased accepting new lump sum investments in their schemes.”This is a sign that froth is forming in this area. Chasers of small-cap stocks ought to be cautious.
Markets may rise as a result of liquidity. Therefore, continuing to invest in this market makes sense. But it’s important to temper optimism with some prudence,” he continued. Even with the most recent market surge, mood is unmistakably bullish. Local and international signs are encouraging. If the late-day US CPI data shows YoY inflation falling below 3%, the US market will continue to rise, supporting other markets as well.
