Shifting expectations in US, the Chinese bull run, and bond market volatility

Fraser Mackersie on UK growth The FTSE 100 continues to hover around the 7,000 level despite consensus earnings forecast to decline by 9.6% in the calendar year 2015. Even when stripping out the embattled resources sectors, earnings growth is a modest 3.7%. This is in contrast to the opportunities we have been able to find in smaller capitalised companies, where earnings growth expectations remain attractive and valuations are compelling. The relative discount of small caps compared to the FTSE 100 (on a 12-month forward P/E ratio basis) is at a level last seen during the sovereign ...