Effects Of a Economic Recession on Micro Stocks

[Liberty]

Many Economist are now no longer predicting whether a U.S. Economic Recession will occur but rather are now asking questions of "how long and how bad"

My Question to the more experienced penny land folks is.
What are the effects of a market recession on Micro Cap Stock Prices?
They are a given in the big-medium-small cap stocks, in that such we will see materials and tech stocks give a retraction. but Financial sector stocks will follow one of two paths given their already bleak outlook. They will either follow suit with New Capital And file for bankruptcy or take a slight hit from their already dismal numbers. Possibly a good time to purchase financial sector stocks, but with caution as it will depend entirely upon how the economy reacts to a further credit crunch (real estate will most likely fall, and credit card debt and defaults increasing)

But nevertheless how does this affect our prices in the micro-cap sector?

[BadThad]

I moved your thread since it deals with a more general topic. The stock sections are for specific picks rather than general discussion.