Three British small-cap stocks with big potential

Professional investor Jonathan Brown of the Invesco Perpetual UK Smaller Companies Investment Trust picks three UK small-cap stocks that should provide meaningful returns.

Despite the economy suffering its biggest setback in 300 years, we think the building blocks are in place for a strong recovery in the second half of 2021. We believe there is considerable pent-up demand for both leisure and retail spending, and thanks to the high savings rate during lockdown consumption could be a driver of strong GDP growth from the summer onwards.

In addition, the Brexit trade agreement gives businesses certainty around trading arrangements with the EU, allowing companies to invest with confidence. Assuming the pandemic doesn’t take an unexpected turn for the worse, the pace of economic recovery could be higher than many people expect.

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Jonathan Brown manages the Invesco Perpetual UK Smaller Companies Investment Trust