‘If you’re considering an investment in small-cap stocks, let tolerance for drama be your guide. If watching your stock lose 20 percent of its value in one day would give you heartburn, small-cap stocks are not for you. If you are unwilling to scour quarterly reports for phrases like “material weakness,” they’re not for you. And if you can’t sell when a stock’s price and outlook are sunniest, this isn’t your investment.

Small-caps, loosely defined as stocks with a market capitalization between $180 million and $1.8 billion, have never looked better. The Russell 2000, the broadest small-cap stock index, has nearly doubled since 2002 and on Monday hit 671.74, its highest point since its 1988 inception; it closed Friday at 663.74.

That’s why at least one small-cap strategist suggests now might be an excellent time to sell.’

Read more at Investors Seek Small-Caps’ Middle Ground

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