Why it might be a small cap world afterall

The greatest party of all time seems to be over, with valuations coming back down to an average level. Nicholas Quinn from Spatium Capital says the market had confidence after central banks declared they would not raise rates till 2024. Yet, here we are staring down the barrel of further rate hikes in June and July. So as local confidence wanes and a new Federal government at the helm, the Small Ordinaries seem to be bouncing around. Nicholas says they have fallen 11% already this month, rebounding 4% and currently hovering at around 8% down - essentially, its been all over the shop. Despite all these movements, Nicholas says overall things are going backwards after pulling back 20% in recent months. This retreat, according to Nicholas, is kicking businesses back into line. With inflation and rising rates, Nicholas says, this forced businesses to assess their own balance sheet, target revenues they can actaully deliver on and ensure they can pass on rising costs. Nicholas dives into the effects of a tightening environment on small caps and says there are some great businesses out there that have been oversold to take a closer look at…