Small-cap stocks are often attractive investments in bullish markets. While a bull market is not guaranteed in 2024, some small caps are already heating up in anticipation of better economic conditions next year. As a result, it might be a smart move to start adding some select small caps to your portfolio ahead of a possible trend reversal in this segment of the market next year.

Within the high-profile innovation theme, Archer Aviation (NYSE: ACHR) and Prime Medicine (NASDAQ: PRME) offer shareholders two of the most compelling risk-to-reward ratios. To be clear, both companies are in the process of developing products for markets that do not yet exist, which is a significant risk factor. However, each of these small-cap growth companies is also working on technology that could transform the fields of transportation and human medicine, respectively.

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Source Fool.com