The surge in long-term treasury yields above 4.75% at the start of the quarter signals optimism about the economy. It also has positive implications for microcap stocks. When treasury yields rise, it often reflects investor confidence in economic growth. Furthermore, this prompts a shift of capital from safer assets like bonds to riskier investments such as equities.
Microcap stocks, known for their growth potential, stand to benefit as investors seek better returns in this environment. Higher yields make microcaps relatively more attractive compared to fixed-income options. This enhances their appeal. Thus, these three sleeper stocks are the ones set to explode in growth as we head into 2024.
This post appeared first on InvestorPlace.