“Be Fearful When Others Are Greedy And Greedy When Others Are Fearful”
AIM COMMENTARY
18 OCT 2022
Over the past 12 months, the FTSE AIM All Share Index generated a total return of -32.2%. Despite the market backdrop we have continued to outperform the challenging market.
As regular readers will know, within this commentary Matthew and I avoid discussing the broader economy or ‘the macro’ as we call it in the industry. There are two reasons for this, one because we feel this is well covered by our Director of Research in our broader investment commentary that CAM provides (https://www.city-asset.co.uk/city-thinking/week-in-politics). The second reason is the risk that we begin to make predictions about the future of the wider economy. It is difficult to avoid this; I have sat in many meetings with our clients and the answer “I don’t know” does not provide much in the way of comfort. However, it is a fundamental tenet of the AIM investment process that the future is generally unknowable. It is challenging enough to judge the future of a single company that you have studied in detail, but a whole global economy? The odds for an accurate prediction in the near term seem low to us.
