As I write, in the first week of April, the coronavirus-induced volatility in financial markets is exceptional. Since the start of the crisis, the FTSE 100 index has so far hit an intraday low of about 4900, in March, down 35% from the beginning of the year. It has since bounced back by 16%.
As usual, going into the new year there are a wide range of views as to potential market outcomes; but also as usual, if there is a consensus, it can be taken to be “more of the same
One of the defining characteristics of the investment world since the financial crisis of 2008/09 has been the underperformance of value investing as a style. There has been much academic work suggesting that over the long term a value approach – in simple terms buying companies where the prices are cheap relative to fundamentals – usually pays off. But in the past 10 years this has emphatically not been the case.
There were signs in the last quarter of 2018 that the growth/technology stocks that had led the bull market were flagging. However, market momentum remains strong, and global consumer brand companies such as Unilever and Diageo are still loved.
Three UK trust underperformers with very different aims catch the contrarian eye of David Liddell of IpsoFacto Investor.
This sector is flying, but fund managers are not buying. We take a look at whether investment trusts are an indirect way to play the sector.
Few pockets of value remain for a contrarians to exploit. David Liddell sets the scene and suggests three trusts that should prove resilient.
Our contrarian investor has eyed up an underperforming investment trust top-heavy with tobacco stocks, while there's also a bargain to be had in Japan.
When markets are stretched it's tempting to run to cash, but three trusts take contrarian investor David Liddell's eye.
Wait and see is probably best for the UK, but Brexit may have given the eurozone the jolt it needed to pursue further integration.