Growth investing

Model Portfolios annual review: can rocketing returns go higher in 2020?

The climax to 2019 couldn’t have been more different from 2018. In the closing weeks of last year, the UK stock market soared, having taken comfort in the Conservative party’s landslide victory and Prime Minister Boris Johnson’s pledge to “get Brexit done”.

Further afield, the prospect of a US-China trade agreement assuaged stock markets that had been derailed at times – most notably in May and August – by the threat of increased US trade tariffs on China.

Why value investors could be waiting in vain for a style change

In another sign that computers are taking over, lots of investment decisions these days seem to be binary. This seems to be true of ‘value’ and ‘growth’ stocks lately. Get on the wrong side of this divide, and you could head home empty-handed.

And if you really begin to believe that everything is win or lose, that leads you down the path of thinking that it’s all chance. Every stock will have its day in the sun, and if any one business has been doing well for a while, it’s only a matter of time before it falls back into the shadows.

Model Portfolios update: a value revival, but does it have legs?

Fears of a global recession and Brexit uncertainty gave investors lots to fret about and posed fierce headwinds for Money Observer’s model portfolios in the third quarter.

The US-China trade war stoked fears of an imminent recession. The latest raft of tariffs – 15% tax on $112 billion ( £91 billion) of Chinese imports, including clothing and consumer electronics, from 1 September – contributed to a volatile period for stockmarkets.

Purposeful Portfolios long-term growth: funds make solid gains despite UK pains

Between the end of May and the start of October, our long-term growth fund portfolio returned a respectable 5.5%. “That performance is reasonably pleasing,” says the portfolio’s manager, Mike Deverell at Equilibrium. “Most things in there made some money. Of course, some didn’t, and unsurprisingly those were UK assets. But everything else went up.”

Model Portfolio Review: UK’s troubles call for change of direction

The UK equity market lagged international stock markets in the first half of 2018, and it was the same story in the third quarter, with the FTSE All-Share index posting a loss of 0.8 per cent. In contrast, the FTSE World index returned 6.2 per cent in sterling terms.

While the underperformance of UK equities may whet the appetite of more contrarian-minded investors, as far as our model portfolios are concerned, it was a big factor behind eight of the 12 falling short of their relevant FTSE UK Private Investor index benchmark in the three months to 1 October.

Model Portfolio Review: Growth stocks propel models back to black

Markets shook off a rocky start to 2018 to return to form during the second quarter – and propel the Money Observer model portfolios firmly back into the black.

All 12 of our portfolios beat the relevant FTSE UK Private Investor index benchmark during the three months to the end of June – some by as much as 3.5 per cent. That saw them recoup losses incurred during the volatility that pervaded investment markets in the first quarter of the year – and then some.