Rosemary Banyard: Are investors taking more risks than they realise?

January is the time when commentators opine about the direction of markets and likely macroeconomic trends in the year ahead. They may not focus on certain regulatory and accounting changes which will impact the UK equity market in 2018.

The first of these, MiFID II, is already upon us, but the ramifications will unfold as the year proceeds. The number of sell-side analysts is widely expected to decline as research payments fall. Coverage of small- and mid-cap companies is likely to reduce significantly, on one observer's view, up to a market capitalisation of £1bn. Liquidity could also be affected.  Consensus estimates will mean different things to different people. All of this will suit those willing to do their own research and valuations, exploit volatility and, above all, take the long view.  Banyard: UK takeover ac...