The discussion on Wall Street is almost entirely dominated by tech giants and AI stocks that are trading at nosebleed valuations. In the meantime, there are many up-and-coming companies with even better upside potential in the long run. Small-cap stocks remain unpopular this year, but as interest rate cuts start, I expect interest to be reinvigorated here.
The risk is obviously higher with small-cap stocks, but they can give you multibagger returns in a very short amount of time. It is a good idea to dedicate a small portion of your holdings to these stocks. If even one of these companies goes on to become a big-name company in the future, it can boost your portfolio massively.
This post originally appeared at 24/7 Wall St.