Many chartists claim to have called the bottom of the market and are now forecasting strong gains ahead. But can investors really make money from their pronouncements, or is it just hindsight masquerading as insight? Robert Tyerman reports
Despite the enduring bear market, we are still excited by the potential rewards that ensue when tiny technology stocks make it big. Ben Cobley surveys the current tech crop that are fuelling investors' fascination and greed
London's Small Cap index has now dropped to 1728.95 against 2486.35 a year ago – as a barometer the FTSE 100 has fallen from 5153.9 to 3616.1 over the same period. However, many analysts suggest the smaller shares market has been oversold, with many recruitment ventures, in particular, looking badly undervalued. Generally speaking, these outfits are regarded as bellwethers for the first stirrings of economic recovery.
Contrary to common perceptions, the new issues market for smaller companies seeking funds has continued to thrive during 2002. Nearly 100 have come to the London markets over the past 12 months, with the Alternative Investment market accounting for around 90. This latter group has raised a total of £439 million. Compared with Europe and the US, where new issues have virtually dried up, London's performance is impressive.