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Market Comment - February '26

February 2026

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Amongst all fund sectors, UK Small Companies was amongst the best in the first month of the year, up 5.5%. The underlying index also beat all global smallers, but for China and Asia Pacific, as well as UK large and mid caps. Clearly the stirring we noted last month has persisted. Yet it is only a stirring, implying that it is early days. Looking at the chart for the FTSE Small Cap ex IT, the peak was back in 2021. Hang on! The peak was just a few days ago, but almost no one noticed, what with excitement around the metals and Trump’s insanity. That is good, because it tells us that this uptrend has some way to go, probably. It is similar to gold stirring in 2024 - no one was interested. If the uptrend persists, and applying ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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