ASX Small Caps Poised for Turnaround After Tough Year

Small-cap stocks on the Australian Securities Exchange (ASX) have had a tough year due to the Iran war and aggressive interest rate hikes by the Reserve Bank of Australia.

The Small Ordinaries Index has dropped 13 per cent so far this year, while the S&P/ASX 100 Index has risen nearly 5 per cent.

Investors believe that small-cap stocks are poised for a turnaround and will soon go on a tear, but it's unclear when or if this will happen.