Four investment trusts to make big profits in 2023

TL;DR

Value investing is no longer the dominating factor; energy and quality are expected to perform well in 2023.

Transcript

foreign with me today I have Thomas McMahon Investment Trust research manager at Kepler trust intelligence hi Thomas Eileen good to see you again um now are there any themes that really sort of grab your attention for 2023 which ones do you think will dominate the next 12 months I mean it is value investing the way to go or cyclical stocks begin to... Read More

Key Insights

• ❓ The growth vs. value distinction is expected to have less impact on investment performance in 2023.
• 👶 Energy stocks are likely to perform well due to limited new supply.
• 💪 Companies with strong balance sheets and market positions are expected to fare better in a weak economy.
• ❓ Cautious investors can consider trusts like Ruffer Investment Companies.
• ❓ Brown Advisory U.S. Smaller Companies is a recommended trust for growth in the US market.
• 💪 JP Morgan Small Cap and Mid Cap Trusts have a strong track record in rallies and strong markets in the UK.
• 🇪🇺 Henderson European Focus Trust stands out for its contrarian approach in a pessimistic sentiment around Europe.

Questions & Answers

Q: What investing themes are expected to dominate in 2023?

The growth vs. value distinction is no longer a driving factor. Energy stocks are predicted to perform well, and quality companies with strong balance sheets are likely to outperform in a weak economy.

Q: Which investment trusts are recommended for positive returns in 2023?

For cautious investors, trusts like Ruffer Investment Companies have a strong track record. Others to consider are Brown Advisory U.S. Smaller Companies for growth, JP Morgan Small Cap and Mid Cap Trusts in the UK, and Henderson European Focus Trust for contrarian stock picking.

Q: Why does Ruffer stand out among wealth preservation trusts?

Ruffer has performed well due to its exposure to value stocks, effective use of protective strategies, and being in tune with the current economy. Other trusts like Capital Gearing and Personal Assets have similarities but haven't had the same standout performance.

Q: What are the risks associated with Rick Capital?

Rick Capital has invested heavily in unlisted assets, including VC, tech, and China, which have negatively affected returns. As a result, it carries more risk compared to its previous performance.

Summary & Key Takeaways

• The growth vs. value distinction that drove markets in previous years is expected to be less influential in 2023.

• Energy stocks have performed well and are likely to continue doing so due to limited new supply.

• Companies with strong balance sheets and market positions are expected to fare better in a weak economy.

• Cautious investors can consider reputable investment trusts, while those more optimistic can look at US smaller companies and European stocks.