Although there are growing concerns about the COVID-19 variant of the omicron, solid small-cap stocks will benefit from strong macroeconomic growth as well as a mild effect from planned corporate tax policy adjustments. We believe it is wise to invest in quality small-cap stocks Genesco, Huttig Building Products and Friedman Industries. They’re lesser-known but have strong growth potential. Continue reading. The economy is slowly recovering with an increase in COVID-19 vaccines. However, investors didn’t react well to the announcement of the new coronavirus type omicron. This was first discovered in South Africa and markets have been volatile for the past week. The October record-high inflation numbers, which were released last month, didn’t help market sentiment.

Initial reports indicate that there may be a misperception about the Omicron Coronavirus variant. The variant is known to cause mild illnesses. Dr. Angelique Coetzee, chair of the South African Medical Association, said, “Currently, there is no reason for panicking, as we don’t see severely ill patients.” Also, JP Morgan Chase & Co. (NYSE:) expects the S&P 500 to surge beyond 5,000 in the first half of 2022.

Against this backdrop, quality small-cap stocks may be better positioned to grow in the coming months due to cheap valuations, robust economic growth, and a relatively ‘benign impact from looming tax policy changes.’ Fundamentally solid small-cap stocks Genesco Inc . Although they may not make the headlines, Friedman Industries, Incorporated, (FRD), Huttig Building Products, Inc., (HBP) and Friedman Industries, Incorporated, (GCO) have substantial growth potential. It might be a good idea to buy their shares as soon as possible.

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