Even with Monday’s sharp bounce, the Russell 2000 Index remains in the hole to the tune of 6% since its early-March peak. That’s even worse than the Nasdaq’s sizable pullback for the same time frame.
This weakness is made more alarming by the fact that, last Wednesday, the Russell 2000 Index moved below its pivotal 200-day moving average line for the first time since late-2012, sparking concerns that we may well be entering our next bear market.
As is so often the case, however, the market’s activity of late has been more random and coincidental than rational or calculated. Translation: Don’t read too much into the pullback from small-cap stocks. In fact, that pullback appears to have created some strong buying opportunities among the Russell 2000’s constituents. Here are four such small caps that bargain-hunters may want to consider first.