Christmas cheer in US equity markets

JOHCM's Thorsten Becker highlights the small-cap trailblazers giving him good cheer this Christmas.

With expectation-smashing non-farm payroll numbers announced in early December and the S&P 500 notching up record highs seemingly every other week, both the US economy and stock market seem to be full of Christmas cheer. While they have trailed their large-cap cousins this year, US small and mid caps, a sector that many UK investors are typically underweight despite being the home of America's future corporate trailblazers, have enjoyed a reasonably prosperous 2014. Valuations remain broadly sensible. And, while we have rotated consumer names in our portfolio as some stocks have reach...