I think there’s a good chance that the bear market that has seen the AIM index fall by 40% over the last couple of years may now be easing to a close.
If I’m right, then now could be an excellent time to revisit the screen I wrote earlier this year to search for shares trading close to their 52-week lows.
I can’t be sure that we’re close to the bottom, of course.
But interest rates appear to have topped out for now, which could ease one of the pressures on asset valuations. In addition, I feel that many UK equities offer enough value at the moment to justify investing, despite the near-term economic uncertainty.
Although I expect to see some degree of softness in earnings next year, I don’t expect a serious collapse in corporate profits. Based on this assumption, I think there’s already plenty of bad news priced into UK equities.
Of course, anyone expecting a serious 2008-style collapse is likely to be taking a more cautious view than me, especially with cyclical businesses.
My 52-week low screen revisited: multibagger opportunities?
I am naturally...