Given the performance of mega-cap stocks like Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) over the past year or so, you might not be surprised to learn that much of the stock market's strong 2023 performance was fueled by larger companies, not smaller ones.

However, one analyst thinks this is about to change. He correctly predicted the stock market's sharp increase in 2023, while many of his peers were forecasting another gloomy year, and you might be surprised at what he thinks small-cap stocks will do in 2024.

In a recent CNBC interview, Fundstrat analyst Tom Lee said that small cap stocks could rise by as much as 60% in 2024. Specifically, Lee said that the Russell 2000 (benchmark small-cap index) could be above 3,000 by the end of the year, which would represent a gain of about 57% from the current level as of this writing.

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Source Fool.com