Are small caps an option in the upcoming bear market?
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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