For many investors, value and growth strategies seem diametrically opposed. With the first strategy, you look for undervalued stocks, comparing current valuation ratios with their historic range; with the second, you want stocks whose earnings are expected to outstrip their sector or the overall market.
Many investors see themselves as being exclusively in one camp or the other, says Dominic Picarda in Investors Chronicle leading to blinkered thinking and lower returns. Far better to consider switching between these strategies.
For example, value investing has "worked a treat" in recent years, but it "can't win every year". And while there's little sign of an imminent growth revival, a significant economic slowdown could "make value come unstuck".
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If you fear the worst for the world economy in 2006, some of the "likeliest looking growth shares", he reckons, are PartyGaming (PRTY,109p), GlaxoSmithKline (GSK, 1,459p), Smith & Nephew (SN, 510p), Acambis (ACM, 210p), BritishSkyBroadcasting (BSY, 499p), Vodafone (VODN, 128p) and Virgin Mobile (VMOB, 305p).
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Career ‘pension gaps’ could reduce average worker’s retirement pot by six-figure sums, new report findsNews The report by the Institute and Faculty of Actuaries (IFoA) has shown key career decisions, like opting out of an employer’s auto-enrolment scheme, could significantly reduce final pension pots.
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Is the US dollar losing its appeal?The US dollar is looking oversold in the short term and is due a bounce. What does it mean for global markets and the upcoming US elections?
