Time to start thinking like a contrarian? 5 small-caps from different sectors with upside potential of up to 24%

Remember, for one, that small-caps are the first to fall and the last to rise. When they fall, they tend to lose weight sharply. This is how it has been for decades. So, be cautious and understand the risk of investing in small companies. One reason for this behaviour is technical in nature. Many small-caps stocks have limited floating stock, which means a bout of demand can lead to a sharp rise in prices, which is good in bullish times. But the same thing becomes a pain point when a correction comes, because it is tough to find a buyer. So there is a risk.