Equities Market Perspective: Are UK small caps overvalued?


Small caps provide exposure to some of the UK’s most innovative and dynamic businesses, and as an asset class, have regularly produced many of the highest performing investments over the past decade or so. In this month’s update, Siobhan Pandya, Head of Equity Markets Content asks how long the good run can continue.

Siobhan also provides a review of market trends in September as global equities continued to strengthen. UK markets were among the top performers, alongside Europe, the US and Japan, while emerging markets and Asia-Pacific ex Japan, lagged. Cyclicals outperformed as investors searched out risk assets, while defensives struggled.

Elsewhere, oil rebounded with Brent crude almost touching US$60 per barrel at one point. Gold weakened though as a stronger dollar and rising treasury yields put pressure on the metal.

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.


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