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Market Comment - January '26

January 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.

Last time, after the November Budget, we said, “It will be interesting to see if there is any relative strength, or weakness, versus global markets in the days ahead.” Since Budget Day, UK small caps have outperformed the FTSE-100, up 3.7% and 3.1%, respectively. This evidence is not earth-shattering, but it does add to the list of reasons why investors would be wrong to overlook UK plc, and particularly smaller companies. Although you wouldn’t think so from media coverage, we can select from a decent range of under-valued companies that are growing their profits. A fair few are also benefitting from a mix of restructuring, are growing their already handsome dividends, and enjoy obvious M&A attractions. With UK interest rates ...

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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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