Small-cap growth stocks have badly underperformed the broader markets since the start of the third quarter of 2023. For example, the Vanguard Small Cap Index Fund has lost 10.3% of its value over this period, while the S 500 has gained approximately 8% in total value (including dividends).

However, with the Federal Reserve seemingly poised to pivot on interest rates by mid-2024, small-caps may be gearing up for a trend reversal. If true, some of the worst-performing small-caps over the prior two years could become next year's big winners.

Which low market-cap growth companies might be worth taking a flier on ahead of the Fed's eventual pivot on interest rates? Cannabis titan Tilray Brands (NASDAQ: TLRY) and urban air mobility company Archer Aviation (NYSE: ACHR) both sank like stones once the Fed signaled the end of the era of easy money in 2021.

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Source Fool.com