At the end of the first quarter we take a look at the indices and sectors that have performed well over Q1, as well as those that have lagged. It’s been a stormy start for many but there are some opportunities.
Looking at the indices, China is the top performing stock market, merely wobbled down 1.88%. In contrast, India props up the bottom of the table, down 11.6%. This might be a good opportunity to buy on weakness for those considering India for the long-term.
The main German and UK stock markets have fared little better. It’s notable that the focussed smaller company indices have fared better than their more broadly focussed largecap peers.
Investor enthusiasm seems largely intact.
Turning to sectors, we see a similar picture. Technology and Telecoms is the only positive sector, up 0.06%. This shows that the rally has been quite narrow, with big tech names driving a lot of performance in the US and Asia. That leadership would be obviously faltering if the long-awaited bear market was now underway.
UK bond sectors take four of the top six slots (UK Gilts down only 0.3%), in contrast to the two UK stock market sectors which hold up the table (down 7%). Other than that, the patterns are not obviously clear. For example, Japanese smaller companies are in a respectable 7th place, whereas the wiser Japan sector is 4th from bottom. Japan may be pinched between a trade war with the US and a strengthening currency, depending on how things play out in the US over the coming months.
ACTION FOR INVESTORS
- The picture is not clear but there seems to be some optimism in the face of the wobble that we saw in February.
- There are opportunities for investors to buy on weakness.
- Don’t let events distract you from following your plan
FURTHER READING
Table 1: Index winners and losers
| Name |
Year to Date Cumulative Performance |
| MSCI China |
-1.88 |
| FTSE Emerging |
-2.62 |
| FTSE Europe Small Cap |
-4.63 |
| FTSE Asia Pacific ex Japan |
-5.15 |
| Euro STOXX |
-5.66 |
| Russell 2000 |
-5.82 |
| FTSE Small Cap (ex IT) |
-5.92 |
| FTSE Europe ex UK |
-5.99 |
| Shanghai Stock Exchange Composite |
-6.15 |
| FTSE Japan Small Cap |
-6.48 |
| FTSE World |
-6.68 |
| Nikkei 225 |
-7.00 |
| S&P 500 |
-7.16 |
| FTSE 100 |
-9.03 |
| Deutsche Borse DAX 30 Performance |
-9.13 |
| FTSE India |
-11.66 |
Table 2: Sector winners and losers
| Name |
Year to Date Cumulative Performance |
| Technology & Telecommunications |
0.06 |
| UK Gilts |
-0.32 |
| Sterling High Yield |
-0.76 |
| Targeted Absolute Return |
-0.91 |
| UK Index Linked Gilts |
-1.14 |
| Sterling Strategic Bond |
-1.21 |
| Japanese Smaller Companies |
-1.28 |
| Global Bonds |
-1.60 |
| Sterling Corporate Bond |
-1.71 |
| Property |
-1.87 |
| China/Greater China |
-1.89 |
| Mixed Investment 0-35% Shares |
-2.50 |
| Global Emerging Markets |
-2.96 |
| Global Emerging Markets Bond |
-2.97 |
| Mixed Investment 20-60% Shares |
-3.05 |
| UK Smaller Companies |
-3.08 |
| North American Smaller Companies |
-3.16 |
| Flexible Investment |
-3.42 |
| European Smaller Companies |
-3.69 |
| Mixed Investment 40-85% Shares |
-3.86 |
| Specialist |
-4.09 |
| Asia Pacific Excluding Japan |
-4.56 |
| Global |
-4.65 |
| North America |
-4.87 |
| Europe Excluding UK |
-5.54 |
| Japan |
-5.66 |
| Global Equity Income |
-6.31 |
| UK All Companies |
-6.86 |
| UK Equity Income |
-7.40 |
Data: 1/1/18-25/3/18