GCICould 2025 be a breakout year for UK smallcaps?
In 1971, Who was it that sang "Won't Get Fooled Again"?
Well 53 years on, UK smallcap investors seem to be dancing blindly to the same tune - arbitrarily dumping AIM stocks and throwing in the towel, regardless of value (see below chart).
Indeed, at Mello Events in Derby last week, the mood music was decidedly down-beat, with equity Pinball Wizard Paul Scott even sensing an air of "despondency".
That said - and admittedly this may be a My Generation thing - but where there's capitulation, there's also opportunity.
In fact, if I was going to hazard a guess, then I suspect 2025 could be a cracking year for UK smallcaps - particularly if they can deliver on their projected 15%+ earnings growth, underpinned by a steady stream of M&A hits.
"You better you better you bet."
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