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Investment Trust Portfolio: Taking the long view

John Baron continues to favour opportunities in the UK
Investment Trust Portfolio: Taking the long view

Last month’s column (‘Crises and opportunities’, IC 24 June 2022) focused on the markets’ reaction to the various economic predicaments created by governments and policymakers, and suggested pockets of value were appearing given the investment trust sector had seen a torrid start to the year – private equity being a case in point. The UK market is also looking attractive - it is no accident the 10 real investment trust portfolios managed on the website tend to be overweight the domestic market. And straws in the wind suggest there may be further reasons to be positive.

Maintaining perspective

Markets are facing challenging times. US equities have seen their worst first six months since 1970 having fallen by over 20 per cent, while the Nasdaq has fallen over 28 per cent – its largest first-half decline ever. Parts of Europe and Asia have also seen steep falls. High inflation, rising interest rates, excessive debt, increased taxation, inadequate policy responses, a war in Ukraine and structural legacies courtesy of the pandemic and geopolitical tensions, including the need to shorten business supply lines, are some of the variables. Volatility persists and investors’ nerves are being tested.

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