Stock market action is anticipated to remain turbulent, due to concerns over looming interest rate hikes to curb the surging inflation. However, Cormac Weldon, manager of U.K. money manager Artemis' U.S. Smaller Companies fund, believes small-cap companies are ready to recover from their price slump as "periods of outright risk aversion tend to be brief."
Moreover, small-cap companies in the United States will likely be more insulated from the global chaos created by the Russia-Ukraine war, which should allow them to generate significant returns. Investors' interest in small-cap stocks is evident from the Invesco S&P SmallCap 600 Equal Weight ETF's (EWSC) 1% gain over the past month.
