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

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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."

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😂😂😂 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.

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