European small caps best for bear markets, says Barings' Williams

Investors should turn their attention to European smaller companies for their outperformance during b...

Investors should turn their attention to European smaller companies for their outperformance during bear markets, according to Barings’ Nick Williams. The manager of the £268m Europe Select Trust believes the sector is cheap compared to bonds and historic averages and said small caps have already outperformed large in 2008. He believes a combination of continued corporate activity, structural change and attractive valuations are providing opportunities for investors. “European equity valuations - both small and large cap - are relatively cheap compared with bonds and historic averages,...