Troy's Lyon says 2014 'eerily reminiscent' of 2007

Troy Trojan fund manager Sebastian Lyon has said equity market dynamics in 2014 are comparable to those seen ahead of the financial crisis in 2007.

While not predicting a sell-off of the extent seen in 2008, the manager of the £2.3bn fund did point out the parallels between this year and the final year of the mid-2000s rally, particularly at the smaller end of the cap scale. In his investor update for September, referring to market movements which took place prior to the 4% slump in the FTSE 100 seen since the start of October, Lyon (pictured) flagged troubles in the small- and mid-cap space which resurfaced last month. "Back in 2007, the (micro cap) AIM market was the first to peak followed by small caps. Then mid caps swooned i...