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UK small & mid-cap boom not over: report

UK small and mid-caps have had a great run lately and look dear. But there's room for more gains
UK small & mid-cap boom not over: report

Smaller cap UK equities have had a great run lately, as indeed they have over time.

Valuations versus large-caps are getting somewhat dear.

But overvaluation is not quite yet at the sort of extremes that have led to underperformance over the last few decades.

The near-term outlook for the UK economy and for sterling remain supportive of smaller-caps for now.

Our momentum model for the FTSE 250 – which has outperformed buy-and-hold – is nowhere near giving a “sell” yet.

As such, we reckon that the small- and mid-cap boom can keep going for now.

to read the full report.