2017 was another good year for momentum investing. Chris Dillow's no-thought momentum portfolio (which comprises the 20 best-performing shares in the previous 12 months, rebalanced every quarter) gained 34.1 per cent in the year. It did better than all but one fund in Trustnet’s database of all companies unit trusts: Elite Webb Capital Smaller Companies Income and Growth.
This has a devastating implication. It suggests that a lot of effort spent analysing stocks is wasted: you could have done better simply by buying stocks that had gone up a lot. Click here to continue reading Chris Dillow on the no-thought momentum portfolio.
Elsewhere, three of the UK’s major drugs companies have used the annual JPMorgan Healthcare Conference to unveil a strategic overhaul. Megan Boxall reports on a sector braced for big changes in 2018.
And over in the Portfolio Clinic, one reader is self-employed and his income is erratic, but his wife has a state sector job with a steady income and final-salary pension scheme. They have three children that they'd like to save for and would like to move to a bigger house, but can't find something they both want and can afford. James Norrington and our other experts tell him to structure his portfolio around the likely demands on it. Read this week's portfolio clinic.