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Recovery's Coming — Grab Small Caps!

Small-cap stocks have taken a beating in the current economic storm, but Bob Sullivan of the Satuit Capital Micro-Cap Fund sees clearer skies and calmer waters ahead, and small-caps sailing out of the recession first.

"Recessions, on average, last about eight months," Sullivan told CNBC. "After the recessionary period ends, we get an expansionary period, and that lasts about 60 months, so where you want to be during the expansionary period is into small- and micro-cap stocks, and we think that now is the best time to be allocating your portfolio into small- and micro-cap stocks."

Recommendations:

His list of picks begins with smart-phone maker Palm and includes out-patient program administrator Psychiatric Solutions , trendy retailer Aeropostale, and long-haul freight hauler Celadon Group.

Disclosures:

Disclosure information for Bob Sullivan was not immediately available.

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