Why it might be the perfect time to invest in small-cap companies

The following article was published by The Sydney Morning Herald, 30 August 2023.

History doesn’t repeat, but it does rhyme – and if this adage holds true, small caps are likely to present strong opportunities for patient investors over the coming years.

In calendar year 2022 the benchmark S&P/ASX Small Ordinaries index delivered a return of -20.7 per cent, which was one of the largest drawdowns in the benchmark’s history. The positive coming out of such a soft year is that, historically speaking, the years following a material small-cap drawdown often prove to be a great opportunity to invest.

……

This material has been prepared by Lennox Capital Partners Pty Limited (ABN 19 617 001 966, AFSL 498737) (Lennox) . It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Any projections are based on assumptions which we believe are reasonable, but are subject to change and should not be relied upon. Past performance is not a reliable indicator of future performance. Neither any particular rate of return nor capital invested are guaranteed.