It is a good idea to have penny stocks with high upside potential in your portfolio, regardless of the market sentiment. There are always pockets of the market that do well when the rest of the market tanks, and individual penny stocks could be standouts due to how small their businesses are.
Of course, that doesn’t mean your entire portfolio should consist entirely of penny stocks, but having a small amount of them could hand you multibagger gains and boost your total returns if any of these stocks go on to outperform massively.
Most investors run from penny stocks because they fear wipe‑outs. The numbers show that the smallest companies have rarely been cheaper than they are today. Here are three to look into.
This post originally appeared at Money Morning.