Wall Street says small-cap stocks are a good bet in a choppy market. Here are the top names

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The Russell 2000 index turned in five straight days of gains for the first time since mid-July, according to CNBC analysis.

And so investors may want to consider that particular asset class, especially amid rising volatility, according to some fund managers and analysts. "A few days ago … we bought a massive slug of stocks in the Russell 2000," Dan Niles, founder and senior portfolio manager of the Satori Fund, told CNBC's "Squawk Box" last week.

Both Citi and Morningstar said small-cap stocks now look cheaper than the broader market. "Quality SMID indexes currently trade at a 30% multiple discount to the S & P 500. We believe this presents an attractive entry point for multi-year holding periods," Citi wrote. "While valuations are not a great short-term timing tool, when coupled with our outlook for moderating inflation and an eventual Fed pivot next year, we suggest building positions in the asset class.

 

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