Investing in MicroCap Stocks

The most significant happening during this timeframe regarding investors was, with no question, the bear market of 2000-2002. After enjoying extraordinary gains in the concluding part of the millennium, the high flying bull markets came to a grinding stop and the face of investing was changed eternally. This was a very distinctive time that may perhaps never be repeated again. The arrangement of commerce hastening to clinch the internet attached with the general public's brand new admission to online investing fashioned most favorable conditions for appreciation the appreciation of the market. This was one of the markets that grew the fastest in history and everybody wanted a portion of the action.

Penny stocks were frequently treated as the pariahs of the investing society and considered taboo by a lot of people previous to the explosion of the internet during the mid to late 1990's. But as the online brokerages started to afford the average person the chance to invest his hard money which he earned, a curious thing occurred. The attraction of speedy gains and inconceivable material goods fascinated the common man to penny stocks in droves. Trading volume on the OTCBB exploded! Websites devoted to penny stock investing started showing up like weeds following a drenching rain. Message boards were the hotbed of penny stock investors and usually resembled a busy bee hive swarming with vigorous drones. The exhilaration was so obvious that you could plainly sense it glowing from your computer screen. Some even went so far as to call this emotion "irrational exuberance" and warned of its approaching destiny.

We were told that our world was coming to an end; we didn’t want to hear this doom and obscurity when there was a MOMO play on the way. There was money to be made and those who snoozed missed the boat. Well, it is known that our world did come to its end, at least for the time being. The market crashes starting in March of 2000 followed by the calamity of September 11, 2001 effectively killed the penny stock market as we knew it.

Penny stocks resulted to be the "Next American Gold Rush". Very similar to the California Gold Rush of the 1800's, the commencement of the Penny Stock Gold Rush produced incomes that were fast and furious. Penny stock investors could almost blindly choose a stock and sooner or later come out with massive gains. With such success, both eras fascinated hordes of prospectors with dreams of discovering the mother deposit. A few investors found wealth while others could only find desolation. Only a very small quantity in reality found the gold that they so desperately longed for of the millions of fortune seekers that trekked to California? Subsequent to the market crash of the early millennium, penny stock investors found themselves in an equivalent circumstance. Both phenomenons went from boom to bust in similar timeframes, creating winners, losers, ecstatic success, and disheartening heartbreak.

We can’t exactly say that we will once again look forward to the weekly MOMO play and chat rooms abuzz with thrilling rumors and forthright hype. In the resulting text, I will tell you why I think that this is the time to go back to the pinks, pennies, and other microcaps in general. It is our intention to make the analysis of stocks that have successfully made the jump from the OTCBB to larger exchanges available to you. We will illustrate sectors of the financial system in which we are anticipating expanded future expansion and the microcap companies that are balanced to conquer them. This is going to be an exciting and enlightening subject for you to read!