UBS underweight on smallcap, midcap stocks: Two reasons why
The smallcap and midcap stocks (SMIDS) may have outperformed largecaps, but more than 60 per cent of them have corrected 20 per cent from their peaks. That said, global brokerage UBS Securities is underweight on smallcap and midcap stocks on account of fading support at the interest rate and retail flow fronts.
smallcap, midcap stocks appear to be on track to deliver similar growth as that for largecaps. Image source: Reuters