It may seem incredible that equity markets performed so well in 2012 despite the ongoing eurozone debt and economic crisis; anaemic growth in the domestic economy; and the ticking time bomb of the US fiscal cliff as the year ended. However, rally they certainly did following a sharp second-quarter sell-off to end the year well into positive territory. The FTSE Small Caps led the way, posting a 24.4 per cent gain, around two points ahead of the FTSE 250. Yet again, the mega caps in the FTSE 100 trailed behind as the index posted a meagre 5.8 per cent gain.
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