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U.S. micro-cap stock surge shows investor risk taking, GameStop effect


U.S. micro-cap stock surge shows investor risk taking, GameStop effect
Lewis Krauskopf
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Some of the biggest winners on U.S. stock exchanges so far this year have been their smallest members, partly fueled by the GameStop effect, but their gains could be particularly vulnerable if investors get skittish about equities.
The Russell Microcap index, whose components have a median market value of about $350 million, has climbed 26% nearly two months into 2021. That gain tops the 4.5% rise for the large-cap S&P 500, whose components’ median market value is about $28 billion, and the performance of benchmark small- and mid-cap stock indexes. ....

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