Investors are once again turning to riskier assets after the latest round of tariff talks and the pause with China. Stocks have rallied off their lows, and the S&P 500 is positive again year-to-date. Goldman Sachs has lifted its S&P 500 target to 6,500, so it sees the stock market delivering one more green year.
If you are also in the bull camp, it’s worth looking into some penny stocks with high upside potential. A surging broader market is going to disproportionately benefit these stocks, since mega-cap stocks are still expensive, and those in the middle aren’t that cheap either. The Russell 2000 (a U.S. stock market index that makes up the smallest 2,000 stocks) is down 6.63% year-to-date. A rebound could be around the corner.
This post originally appeared at Money Morning.