What’s Hot? What’s Not? Gold, gold, gold (and Woodford) [Fund Edition]

Gold is glittering this month. Absolute return is absolutely horrible and Woodford’s funds continue their slide.

• Gold and natural resources funds make up 8 of the top ten, if we include Russia as a commodity-dependent country.
• Two European funds round out the top ten.
• Gold is the most interesting for us. Back here we said that the time to buy gold is when it is out of favour. Now gold is hitting highs and we’re seeing headlines talking about how to buy the “ultimate safe haven” investment.
• We talk a lot about the behaviour of investors and there’s a good reason for that: investors do the same things again and again!

• Two Woodford and three Absolute Return funds are in the doghouse.
• Indian funds take two spots in the bottom table. We think the long-term potential of India is huge so periods of weakness are a good opportunity to add to long-term holdings, if you’re comfortable with the risks.
• UK Smaller Companies also feature in the bottom table. As with India, there’s evidence that smaller companies will outperform over the long term. Although, the UK has its own specific problems, don’t fall into the trap of thinking Brexit is the be-all and end-all.

FURTHER READING

• Gold bug? This one's for you.
• Market update - head on the block, again.
• International Panic Day - markets and panic