Market has mixed feelings about recovery

Mainstream UK managers are currently divided between those who believe the economic worst is over an...

Mainstream UK managers are currently divided between those who believe the economic worst is over and those who feel this year's rally has gone further than fundamentals justify. According to Standard & Poor's analysis into funds in the UK Growth sectors, this polarisation depends on whether the rally in small caps this year is evidence of an economic recovery or simply a technical rebound in previously bombed-out stocks. James Tew, director of research at S&P's Fund Services, said: "With small caps up by more than 26% and pundits predicting a forthcoming catch-up rally in the FTSE 100,...