Small caps offer attractive long-term prospects

ON SMALLER COMPANIES

Close Asset Management's Deryck Noble-Nesbitt says investors should not be nervous when investing in smaller companies.

It is very easy to get nervous when investing in equities, even more so in smaller companies. After all, half of the last decade has been spent living through two of the worst equity bear markets in history. Furthermore, equity markets have had a good run since the last turning point in March 2009. Surely, given continuing concerns over the overall level of debt in Western economies, the gradual emergence of global currency ‘wars’, increasing signs of social unrest and indications of rising geo-political tensions, equities are due a significant sell-off? This is certainly possible in the...