Small Caps – approaching another reconciliation point

We are approaching another “reconciliation point” for equities being the first half results for FY16. These have increasingly become more volatile periods as all the jockeying and positioning by investors is measured by the more fundamental yardsticks of earnings and cash flow. January has commenced in relatively poor fashion for most equity markets and we suspect we may be in for a relatively turbulent year ahead. Tomes have been written on the global macro-economic backdrop for equities. What the more sage voices out there are saying however is that it’s time to be cautious. We think doubly so as we are going into a challenging period with broadly full equity valuations. With that in mind what are we looking for and what are we looking to avoid - not merely over the reporting season, but for the remainder of this year? We explore this in "Small Talk: Harry is a lousy investor!” (VIEW LINK)