Three small cap stocks the experts are buying in 2017

As we say goodbye to 2016 it’s time for my annual review of how the UK small cap markets have performed, and for a few investment ideas for 2017.

In general, small caps had a good year in 2016, with the FTSE AIM All Share gaining an impressive 14.2%. The FTSE Small Cap Index was slightly behind but still put in a decent gain of 11% and reached an all-time high.

However, their larger blue-chip cousins outperformed over the year, with the FTSE 100 up by 14.4% to a record high as mining stocks recovered and a weakened pound boosted the value of the internationally heavy index.


In contrast, the mid-cap FTSE 250 only gained 3.7% over 2016, but again managed to reach an all-time high in October as the UK focussed index recovered from a slump caused by the aftermath of the EU referendum result.  

So 2016 a good year on the whole for small cap investors, and further analysis of the numbers highlights several interesting points….

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