Are small caps an option in the upcoming bear market?

By Meagan Evans. Published at Apr 8, 2019, in Features

Fresh pain is on the way for investors warns Jamie Dimon, CEO of JPMorgan Chase & Co., the largest bank in the US.

In his annual report to shareholders, Dimon suggests that investors should brace for a downturn.

His pessimism follows last year’s correction when the ASX 200 lost 14% between late August and late December and, in the US, the S&P 500 lost 19.8% in the fourth quarter, just toeing the line above entering a technical bear market.

Markets have largely bounced back since, but don’t get too comfortable: Dimon speculates that “The fourth quarter of 2018 might be a harbinger of things to come”.

Assuming he’s on the ball — although there are no certainties in the markets — what does that means for small cap investors?

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