In particular, Japanese and European small-caps are among the Investment Quorum team’s preferred regional plays currently.
Both of these Investment Association categories sat within the top ten best performing sectors of the first quarter.
Aside from the obvious draw of being cheap, especially when compared with the premium prices commanded by US equities or large-cap stocks in general, there are a trove of good businesses to discover.
“From an investment standpoint, when you dig to the mid and small-cap level, there are always more attractive options,” he explained.
“The big, large-caps in the UK or Europe get researched to pieces. There is less research done on the small to mid-cap companies so good stock pickers and fund managers can really find some gems in those areas.”
That’s why if we get a weaker yen and prime minister Shinzō Abe is able to continue with his policies, then Japan will “really look like an attractive area versus the US,” said Lowman.
Even in what remains a politically charged eurozone, Lowman believes you can make a similar case for strategically diving in among the small-caps.
