Euro small caps still suffering

The European Smaller Companies sector has been a roller coaster ride for investors over the past three years.The highly cyclical nature of the underlying asset class has lead to both staggeringly good and bad performance. When markets are rising and monetary policy is lax, money flows into smaller companies as investors look to cash in on the sector's heady growth potential. Conversely, falling markets and rising interest rates hit smaller companies hard, as liquidity dries up and investors flee to large caps, which they typically believe to be safer investments. Confidence in the as...