In this article, we will discuss the 10 best stocks to buy under $10 according to hedge funds.
Hedge funds are always considered ahead of the investment game as compared to retail investors because of their resources, experience and access to advanced tools. Some hedge funds are highly diversified, while others are concentrated in certain sectors.
Cheap stocks with strong growth catalysts provide investors with an opportunity to generate attractive returns in a short period of time in an era of rising market valuations. According to Jamie Harmon, Fidelity Low-Priced Stock’s co-manager, it’s still possible to find some fantastic bargains in the market.
“The opportunity with low-priced stocks is that you’re looking where no one else is looking.”
Cheap stocks are obviously not fancy and famous like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) or Twitter, Inc. (NYSE:TWTR). Nonetheless, they can be beneficial investments considering the financial impact of Covid-19 on the US economy and the effect on the income levels of the population. As per IMF, the global economy shrunk by 4.4% in 2021 and around 8.9% of the population in the United States became unemployed. This has been considered as one of the factors attracting investors towards cheap stocks. According to Bloomberg, in the first quarter of 2022, Russell 3000 stocks that were priced lower than $2 had risen about 13% on average. While stocks with a price of less than $5 were up about 10%. This was over three times the increase seen in stocks with a stock price of more than $100.