This time last year, the Investors’ Chronicle’s stock screens were in a bit of a sorry state. The proxy cause lay in the strong relative performance of the FTSE All-Share. Owing to a big 2022 for a handful of sectors – think oil and gas producers and traders, weapons sellers and retail banks – the UK’s blue-chip index, against which many of our screens are measured, became a very tough benchmark indeed.
At around 5 per cent, the Footsie’s total return was hardly a knock-out by long-term equity market standards. But in a world of battered stocks, reeling from the reset in market volatility, inflation and interest rate expectations, 5 per cent was hard to beat. The S&P 500, which posted an 18 per cent total loss for the calendar yet, didn’t come close. And while our stock screens fared a little better, the absence of an oil major in the previous year’s selections was often enough to send returns deep into the red.
Though equity investors have experienced another tough year, especially in the UK, the screens had a better 2023. Over the past 12 months, the average annual screen in our stable is up 5 per cent, including dividends, compared with an average rise of 2.6 per cent for their benchmarks.