The past 18 months have been tough for smaller companies and particularly microcaps, the size factor has hurt this end of the market, with liquidity being more important than fundamentals. At an Index level this has resulted in Small Caps now trading below the long term average relative to Large Caps, digging further down to microcaps it is the best value since the GFC in many cases.
The pressure from the move towards larger stocks is abating, tax loss selling is fast approaching and we’re also seeing an uptick in M&A.
Head of Smaller Companies and Microcaps, Andrew Smith, discusses why he believes this could be a great opportunity for investors to act now.
Some of the topics that will be discussed:
- Why the best is ahead for small caps and microcaps
- Liquidity More Important than Fundamentals?
- Extreme Divergence of Smalls vs Large Industrials!
- Takeovers and outlook for M&A
- Portfolio positioning
Disclaimer: Please note that these are the views of the presenter and not necessarily the views of Perennial. This video does not take into account your investment objectives, particular needs or financial situation.