UK smaller companies good value

Pity the professional fund manager. Just when everyone had learned the mantra 'old economy bad, new economy good', stock markets around the world showed yet again their capricious nature. In the first quarter of 2000 the savage sell off of TMT was matched only by the sudden return to favour of those stocks that in 1999 we thought were too boring. Now valuations have partly corrected, where next? Going into the quiet summer months, it is difficult to see reasons for investors to push the US market higher. We are still concerned about overall US equity valuations. Tech stocks have rebound...