Disclaimer
This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.
The plight of UK companies has been a talking point across the investing world and the media landscape alike for much of the past year. There has been debate as to whether the UK can achieve the fabled ‘soft landing’ of calming inflation without tipping the country into a potentially deep and painful recession. One of the victims of this uncertainty has been the UK stock market, or more precisely its smaller companies. However, data has shown that since 1955, every time UK smaller companies have had a negative calendar year, they have delivered positive returns over the following three-year period. With 2022 being a negative year for small caps, could this be one of those moments which investors look back on and think ‘what if’?
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