Smaller cap stocks offer good value for equity investors

While UK equities remain at depressed levels, there are good opportunities, particularly for small and mid-cap stocks which are less exposed to geopolitical problems

Last year was a very difficult and painful one for UK investors, with the FTSE mar- ket experiencing its biggest fall since 1974. In fact, this is now the most severe bear market to hit the UK for more than 70 years. Not surprisingly, investor confidence has been shaken and sentiment is at a low ebb. In such an environment, convincing investors during the current Isa season that equities still make sense is becoming more and more difficult. Some of the current weakness is due to geopolitical worries, with uncertainty over the timing and outcome of a US-led attack on Iraq the main conc...