Small Cap Value Report (Mon 26 June 2023) - BMS, DWHT, LOOK, CINE, POLR

Good morning from Paul amp; Roland, raring to go!

Gorgeous weather continued over the weekend here in Bournemouth, so it feels like I'm on holiday!

I've got into a good routine each weekend now - Saturday morning is to go through the week's SCVRs, replace any missing tags, update my quick reference spreadsheet summary, then I record the weeks' podcast. Sunday morning is for recording my macro/markets podcast, having done some digging around for relevant data and articles. Sorry part 2 was so lengthy this week, but there was masses of information, and I reviewed the Bank of England MPC summary/minutes, which was useful in better understanding the Bank's rationale for increasing rates aggressively again to 5.0% (due to inflation amp; labour market running hotter than expected), despite admitting that it didn't yet know what impact the previous 12 interest rate rises would have.

Brief macro thoughts

I'm actually a little less bearish than last week though, as I explain in the podcast. This is because consumer confidence data from GfK has been consistently improving since last autumn, and the interest rate hikes mainly shift money from borrowers to savers. Yet mortgages are something like 85% fixed, so that impact will only occur gradually,...