The manufacturing sector in the US is also one to watch, benefitting recently from several big parts of legislation, including the infrastructure bill, the Chips and Science Act and the Inflation Reduction Act.
“This top down, multi-year support for this sector [has not existed] in the past… and this benefits small and mid-caps given their domestic exposure,” Rucker says.
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The relative size of small and large caps also means they are not impacted by a withdrawal in cheap money driven by rising interest rates, as can happen in the UK.
“We are definitely in an era of less liquidity, but it is not disastrous by any means.
“There will still be lots of investment made, and better returns.”
sally.hickey@ft.com
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