Big bets on UK mid and small-cap companies don’t make a lot of sense, JPMorgan strategist warns

  • 📰 CNBC
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Many U.K. investment funds have a large overweight exposure to Britain's small and mid-cap companies, but one major market strategist has warned that now isn't the right time to be making such 'big bets.'

, said the average investment fund in the U.K. had half of its money invested in small and mid-cap stocks.

He said the near-term performance of mid and small-cap stocks was largely contingent on the U.K. brokering a trade deal for operating outside the EU and the approval of a coronavirus vaccine. The FTSE 100 has fallen by around 21% year-to-date, while the mid-cap FTSE 250 index is down nearly 19%, and the small-cap FTSE 350 index has lost close to 21% in that time, according to Refintiv data.

"So I don't think a 30% overweight in mid and small-cap stocks, which a lot of funds are taking, makes a lot of sense," Bell said. At the same time, he acknowledged the U.K. stock market did currently offer "reasonable value."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

😂😂😂 nowadays stocks in stock market never makes sense...

Looking from all angles at the UK economy, left, right and centre I fail to see why I should invest in the island. Yes, their companies are dirt cheap, but the reasons why they are worthless are many. With the Pound's diving prospect, I will avoid the UK Market.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Banijay, ITV Studios, Beta Underscore Current Market Buoyancy for Big Euro Content Players at Mipcom PanelInternational content remains on a distribution roll despite COVID-19, three leading European TV distribution execs maintained at a Mipcom Online Plus market intelligence panel, aired on Monday, an…
Source: Variety - 🏆 108. / 63 Read more »