What’s Hot? What’s Not? Asia and Commodities climb, Gilts and European Property sink [Fund Edition]

Commodities dominate the Hot list along with Asian and emerging markets.  Long dated bonds make up most of the Not Hot list.

We’re a bit quick off the mark for the first What’s Hot of 2017 but we were so excited we couldn’t resist. 

(and at least two funds highlighting the importance of having a good fund selection process).

What’s Hot?

• Commodities again dominate with Resources and Gold funds taking the top spots.
• Asian and emerging market funds make up the rest, with 5 of the 10 top funds.  
• Interesting in light of Trump’s protectionist mantra...
• …or perhaps it was all in the price?  
• A European opportunities fund makes up the list, in particular due to the bounce in European financial stocks.

What’s Not?

• Animal spirits continue to dominate and we can see this in the Not Hot list because “lower risk” investments stand out.  Long dated bonds make up the majority (6/10 funds).
• Two European property share funds also put in an appearance.  Investors must understand the difference between property shares and physical property (more on that here).
• One UK income fund and a European smaller company fund also show…
• …the latter again highlighting why you need a dynamic review process to move out of losers into winners.

FURTHER READING

• Hurrah for ETFs
• 16x More Growth!
• The Curse of 20,000