Our "Bullish" outlook for small cap equities over the next 12-24 months is unchanged.
In the last year, market performance in Australia has been dominated by a small number of large cap stocks, we expect the trend to reverse as investor risk appetite returns to the market.
Small cap outperformance is expected to continue as the breadth of the current share price rally broadens. Post the reporting season, we have added several new names to the portfolio and our confidence in higher growth small caps is unchanged. The portfolio has been moving capital out of lower risk, less volatile large caps into higher growth inexpensive small caps.
Read more, for the background behind the investment view. Thanks to Christopher Conway from Livewire Markets "Why consistent demand and falling inflation mean the ASX can continue to rally."
