Where’s the clever money going? September 2017

Where’s the clever money going? September 2017

Summer seems to be over, but the UK market has taken off recently, with an FTSE 100 index ranging between 7350 and 7450 in recent months.

However, it fell below 7,300 after the Bank of England Monetary Policy Commission met in mid-September, with the strengthening of the pound by more than 1.5 cents, a possible increase in rates in the “coming months “. A stronger pound makes life more difficult for the export-oriented blue chips that make up the index.

In Interactive Investor, Wild Lee commented: “After a strenuous 2,000-point march between February 2016 and the June stock market record spread its rest moving sideways greatly during the summer months.

“The FTSE 100 and the All-Share FTSE All Index rose less than 1% in August, although the North Korean blow has put investors’ nerves to the test. Concerns that Kim Jong-un could seize Guam, the West Coast of the United States or anywhere in between began to increase throughout the month’s long arm, while enthusiastic shoppers took advantage of every sale.

Wild AIM added: “Perhaps the biggest story to go under the radar in August was to break the AIM market above 1,000 for the first time since the summer of 2008. It has easily surpassed the other index agents in 2017 so far , an increase of 20% in the last eight months.

Later, several commentators highlighted the strong valuation of the US market. Money Observer notes that the S & P 500 CAPE ratio (which compares the average 10-year (inflation-adjusted) annual income with its price) twice in 1929 and 1999, shortly before a financial catastrophe occurred.

However, emerging markets rewarded investors in August. “Despite India’s disappointing 5.7% growth, emerging markets had a good month, with China and Russia well. Hang Seng was the best performers in the main markets, 2.25% during the month,” he said. reports Ben Yearsley of Shore Financial Planning.

In terms of resources, risk assets – in particular China and global emerging funds – were absorbed by small Japanese companies (Japan experienced its greatest growth since 2015).

Meanwhile, the top five countries include both UK companies and UK equities. British fund managers, among other tribulations, have struggled to navigate the aggressive rotations of the year between growth and value.

Among the less profitable, the most notable aspect is the presence of Neil Woodford’s homonymous equity fund, which lost 4% during the month.

Despite its disastrous performance Woodford Equity Income continued to rank among the most purchased funds on the Interactive Investor website, ranking third behind Fundsmith Equity and the Lindsell Global Equity Train. It is clear that some investors seem to see Woodford’s current decline as a longer-term buying opportunity.

The best performance of investment trusts during the month of August was a more eclectic collection, with a range of asset classes, although natural resources are the most prominent.

Edinburgh Investment Trust, managed by Mark Barnett of Invesco Perpetual, decreased by 5.5%.

In part, Andrew McHattie explains in the Investment Trust Newsletter, because his larger share, BAT, recently had a bad balance sheet, but was aggravated by the expansion of the discount, as investors avoided their disappointing performance.

Looking to the future, broker Stifel sees opportunities still to be explored among investment trusts in emerging markets, the region continues to experience strong growth, particularly in terms of technology companies. Tech is now the largest sector in the MSCI Emerging Markets Index.

“In the last two years, emerging market trusts have generated strong returns but continue to languish with double-digit cuts as investors focus on developed markets,” the distributor said. Highlights four emerging market trusts as good value:

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