The sun’s shining and Xmas is on its way. However grey-haired investors like myself know it won't be all smooth sailing over the Winter.
In fact, despite last week’s strong equity rally thanks to favourable interest rate decisions by the BoE, BoJ & Federal Reserve. I think we all can safely assume there’ll still be setbacks and mini-crises going forward. Albeit my gut feel - after a punishing 2 year Bear Market - is suggesting we’ve potentially reached a major inflection point for UK smallcaps.
So much so that I’m now fully invested (see below portfolio breakdown & returns). Having added translation services firm RWS Group, cyber-security stock GBG Plc, leak detection specialist WATER INTELLIGENCE PLC and asset manager AssetCo plc over the past couple of months.
That said, it’s certainly no time to crack open the bubbly. As I’m equally trying to avoid pure speculative plays - especially those low probability bets which probably need to raise more capital.
Big picture however, there are two important points for investors to glean wrt today’s splurge in M&A activity. Firstly that valuations are attractive to long term, risk tolerant professional investors. And 2ndly we could (hopefully) have reached a bottom in smallcaps (crossed fingers anyway).
Either way though, please DYOR research. My 24 year HIT RATE is only 63%. Meaning 37% of the time, I’m wrong.
