Performance of FTSE AIM vs FTSE 100 and FTSE Small Cap Index over 1-yr
Source: Financial Express Analytics
Financial Express data shows the FTSE 100 limping along this year, returning 16 per cent to investors. The FTSE AIM index, meanwhile, has returned 41.9 per cent since this time last year.
"With banks underperforming, and pensions still pulling out of equities, the FTSE 100 has had a tough time. That could all change next year, though," Luthman said.
The manager is still bearish on the outlook for the global economy, however, and is keeping his portfolios underweight on banks. Luthman thinks western currencies, the dollar, sterling and the euro, will continue their downward slide against Asian currencies.
"It is almost inconceivable that this won't happen. There will have to be currency devaluations so that wages in the west and the east become more fairly matched, otherwise all work will shift to the emerging markets and the west will face years of high unemployment," he said.
But Luthman is positive on the prospects for making money.
"This doesn't mean we're negative investors. There are a lot of opportunities out there."
Performance of Walker Crips funds vs FTSE All Share over 3-yrs
Source: Financial Express Analytics
Luthman runs six funds at Walker Crips, along with co-manager Stephen Bailey, all of which are top performers in their respective sectors.