Indicies rarely perform 2 years in a row, The FTSE250 has outperformed by a mile in 2005, will be tough to do the same again imo. On the other hand, AIM is up just 0.5% over the past year. I suspect a lot of the winners on AIM were resource companies which meands non resource companies probably feel last year on AIM, on average. I think this could be their year. So many small AIM companies are also previously fully listed companies that have moved to AIM this year too. All the real value I can find is on AIM (sadly this means un-ISAable :-)). Best you can hope for is taper relief if you find a long term AIM performer.
For those that follow charts, AIM is also in a huge pennant formation from Aug 04 - on the verge of a big breakout this year?
Finally, AIM has been the 'performer' index in the past yet it is currently below where it was in 1996! I can't help thinking if interest rates have topped or are going to decline this year then investors will be looking at this 'perceived' rate sensetive index. Some of the ratinings on AIM are currently pretty low historically and if some are currently going to surprise to the upside then AIM might get exciting - hopefully!
