Investment Trusts are not for the faint hearted as they can be more volatile than your average investment. However, Neil Hermon has given a balanced view on the current markets and his thoughts on the economics, their portfolio, what they are doing and buying and things to be positive about:
Investment Trusts can be extremely volatile, shares can be bought at a premium or discount and they can use ‘gearing’ to enhance potential returns (or losses). For the right client they are fine but please seek advice if you are considering buying Investment Trusts.
From my point of view this article from Neil Hermon further reinforces the consensus view in the market. The UK Government is doing the right thing, it looks like markets are very oversold currently and for Fund Managers there are opportunities to buy quality stocks at the right price.
Steve Speed
24/03/2020