Penny shares will not escape the general market mood. There will be others, though, picked up on the cheap by ambitious new management which will generate spectacular gains. That is where penny shares score for private investors who go into them with their eyes open. The opportunity of making a high return is much greater in penny shares than in the average big company with a heavier share price. Most penny shares tend to be in smaller companies.
Smaller companies are always riskier.
They find it more difficult to attract extra money, struggle to establish themselves against the competition, and are generally more vulnerable to difficult economic times. If they get it right, though, the pay-off is much bigger. That makes real sense for private investors who are ready to recognise that they are taking higher risks in the search of higher returns. If you want to play the stock market with such sums, far better to gamble on something which might double, treble, or even quadruple. That really could make a difference.