Valuations are increasingly attractive, supporting the case for renewed outperformance of small cap stocks.
- Higher oil prices, inflation and interest rate pressures are unhelpful to the performance of small cap and growth stocks. However, interest rates are peaking and inflation is beginning to fall.
- Earnings per share are growing and therefore small cap valuations are increasingly attractive.
- This supports the case for renewed outperformance from small cap stocks, particularly those with high-quality and growth characteristics
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The work we have done over the year-to-date puts us in a good position to outperform going forward, investing in a small cap universe which is well positioned compared to large cap in Europe and compared to the US. Download full article to learn more.