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Keep faith in UK small cap shares

London-listed small companies beat even US blue chips over the long-term
Keep faith in UK small cap sharesPublished on January 21, 2025
  • UK small caps make 9 per cent annualised real returns since 1955
  • London's size premium beats the global average in the 21st century

Clickbait business models have created an incentive structure that leads modern media to emphasise bad news. Dismal headlines capture eyeballs and sometimes the sea of negativity threatens to drown out less sensationalist commentary.

The UK stock market has been on the receiving end for the past couple of years but apply a bit of perspective and you’re reminded of how optimism can earn rich rewards. The recently published Deutsche-Numis annual review demonstrates this starkly: over the past 70 years small companies listed in the UK have delivered a total returns performance which trumps even that of mighty US large cap stocks.

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