TradingKey – While there seems to be a trend of investors moving away from speculative penny stocks, there are still many investors who are more inclined to take the risk and see the possible rewards of holding these types of stocks. 

Speculative penny stocks are associated with greater risks since many of the companies in this price range do not generate profits and, in some cases, do not generate meaningful revenue. 

Additionally, the vast majority of speculative penny stocks are considered small-cap stocks, and as the small-cap sector of the stock market has been beaten down for several years, there is not a lot of strength currently within the Russell 2000.

An improving economic backdrop could be the catalyst for speculative stocks…