In the middle of the biggest share market downturn in decades, investors were flocking to the tried, the true and the familiar. Small and risky was no longer beautiful. But 12 months is a long time in the financial markets.
The Australian Financial Review, in February 20091, caught the mood in a report headlined ‘Faint Optimism amid Gloom’. The article noted that signs of a turnaround in the small cap sector were scarce. Risk appetites were “anaemic” and earnings downgrades were outstripping upgrades by 5 to 1.
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