Aiming for glory: four top tips for 2022 from London’s junior market
“React Group does the heavy-duty cleaning nobody else wants to do, including prisons”
“Nuclear energy is always on and it doesn’t emit carbon – useful for the transition from fossil fuels to renewables”
It has been alittle over a year since my article highlighting five speculative Aim shares for 2021. It was a year of two halves, as a football commentator would put it. We saw a stonking rally in smaller companies, or small caps, in the six months after news of the vaccines broke in early November 2020.
But in the summer of 2021 many stocks suffered cash outflows –death by athousand cuts. Much of the liquidity in small caps is provided by private investors. So when they are spooked and start selling, it can trigger an avalanche of sells as the fear spreads. Timing the swings can be highly profitable, as we can see in the table below.
