UK smaller companies look positive

Global stock markets have rebounded sharply since March, prompting some observers to herald the rally as the start of the next bull market. However, with underlying global economic growth still subdued, others now assume the rally has gone far enough. Our assumption remains that many asset classes offer the prospect of rising returns for some time following the bear phase of recent years ' one in which we have great conviction is the UK smaller companies universe. Smaller capitalised companies in the UK have historically been viewed as strong candidates for generating premium earnings a...