There can be no other description of the UK equity markets other than "disfunctional". From mining to venture capital it's the same story. The risk appetite of retail investors has been strangled. The long-term consequences for enterprise, innovation and economic growth are terrible. If it was just cyclical I would not be too concerned but I feel this time it may be systemic. Companies will look elsewhere for capital if this continues and London will become a backwater.
Fluffchucker; whilst I feel the UK/small mkt as being undervalued, unloved, i increasingly see in that, great value and oppurtunity. That said I agree there is an element of contagion, a slow drip drip to irrelevance. I point squarely at the lack of Government, and the lack of stability. And the pension funds and their accountants for slavishly adopting liability driven investments (which means bonds/guilts and not equity).
While I approve of this analysis and find it very interesting, I suggest that Mr. OakBloke adds a disclaimer that most of his tips are small cap or micro cap holdings that suffer from higher risk and higher volatility than companies that are traditionally defined as "blue chip".
Oak I think you need to check the table of holdings in your article. I don't believe Endomag is Finish not that FintechOS is a digital wellness company. Probably a few others....?
Hi Fluff, thanks - oh yes I'd combined two tables together so I guess the running order differed. I've amended the list but let me know if you spot any others.
Hi Oak. Not concerned re country although Graphcore may wish it was German!! More concerned that the numbers matched. Great analysis though. Unfortunately AIM is now totally dysfunctional. POW/DEC and others are/will increasingly look elsewhere for capital. POW is ridiculously under appreciated IMO and I think Sean has had enough!
There can be no other description of the UK equity markets other than "disfunctional". From mining to venture capital it's the same story. The risk appetite of retail investors has been strangled. The long-term consequences for enterprise, innovation and economic growth are terrible. If it was just cyclical I would not be too concerned but I feel this time it may be systemic. Companies will look elsewhere for capital if this continues and London will become a backwater.
Fluffchucker; whilst I feel the UK/small mkt as being undervalued, unloved, i increasingly see in that, great value and oppurtunity. That said I agree there is an element of contagion, a slow drip drip to irrelevance. I point squarely at the lack of Government, and the lack of stability. And the pension funds and their accountants for slavishly adopting liability driven investments (which means bonds/guilts and not equity).
While I approve of this analysis and find it very interesting, I suggest that Mr. OakBloke adds a disclaimer that most of his tips are small cap or micro cap holdings that suffer from higher risk and higher volatility than companies that are traditionally defined as "blue chip".
Oak I think you need to check the table of holdings in your article. I don't believe Endomag is Finish not that FintechOS is a digital wellness company. Probably a few others....?
Hi Fluff, thanks - oh yes I'd combined two tables together so I guess the running order differed. I've amended the list but let me know if you spot any others.
Hi Oak. Not concerned re country although Graphcore may wish it was German!! More concerned that the numbers matched. Great analysis though. Unfortunately AIM is now totally dysfunctional. POW/DEC and others are/will increasingly look elsewhere for capital. POW is ridiculously under appreciated IMO and I think Sean has had enough!
Fluff you sound like you've capitulated. Many have. But what happens after everyone capitulates? The cycle begins again.
Fear of Missing Out is a powerful emotion. Animal spirits.
And I believe it will become increasingly obvious that people *are* missing out.
5% for bank savings minus inflation is what 2-3% real earnings?
Sky high crypto prices that generate zero real earnings, and a loss minus inflation (and costs).
House prices are high, yields are low, Buy to lets are dead.
Is TINA back from her break?
So I have a more optimistic view. I believe we will look back on the 2021-2024 "drought" and bemoan the value we once could get!
It's coming!
https://www.foley.com/insights/publications/2024/02/positive-outlook-uk-m-a-2024/
https://www.pwc.co.uk/issues/value-creation/insights/mergers-and-acquisitions-trends.html
https://finance.yahoo.com/news/record-6-trillion-cash-sidelines-211101016.html