Profiting from change is the only constant

If there is one lesson to take from 2020, it’s that investors need to stay on the right side of change. We look at how The Monks Investment Trust approaches the task.

Stock market chart with a green arrow rising

The value of your investment and any income from it can go down as well as up and as a result your capital may be at risk.

If there’s one thing that 2020 taught us, it’s that change is the only constant. Coronavirus, and the global lockdown which has accompanied the pandemic, has transformed the outlook for some industries utterly, while accelerating the pace of change in others. It’s a reminder that while an awareness and understanding of economic cycles of the past are critical for any serious active investor, comparisons with history can only be taken so far. “Reversion to the mean” is a useful concept in markets, but an overzealous application of the principle can blind an investor to the reality that throughout history, technological progress and unexpected events have rendered entire industries obsolete, while opening up new and highly profitable opportunities in areas that were once inconceivable.

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Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investments trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority. A Key Information Document is available by visiting www.bailliegifford.com

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All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.