While googling around I found this perspective
posted on
Feb 08, 2009 07:06PM
Worried About Recession? Don't Sweat It. A Recession Actually Benefits Traders of Microcap Stocks...
So how can a recession in the "big board" stock indexes be a positive factor for the microcap markets? It's due to the simple fact that many investors take a break from large cap stocks to focus on microcaps during recession.
Large cap stocks have a hard time bucking the trend of the overall market conditions, while microcap stocks are most independent of overall market conditions. This brings investors with fat pockets into the microcap market which means more liquidity.
More liquidity is a huge benefit to microcap traders, so don't fret about the recession.