Five ‘unloved’ investments worth a fresh look
By Jassmyn Goh, 18 Apr 18
Long term investors should seek out some often over-looked sectors to boost portfolio diversification, according to Morningstar Investment Management. Click through the slides below to find out which five areas it has identified as hidden investment opportunities.
Source: FE Analytics
Despite interest rates rising and treasuries becoming less attractive, Kemp has taken a different view.
“Investors should instead anchor to the fundamental value of US Treasuries. This means they look favourable over the likes of UK Gilts, especially for shorter-dated issuance, primarily due to a combination of a higher yield and lower duration,” he said.
Looking at a number of US Treasury indices using FE Analytics, the sector has not performed well over the last three years to 31 March 2018 with returns between -8.21% and -11.43%.
But when taking a longer time horizon, the sector returned between 7.38% and 16.86% for five years, and between 70% and 66% for 10 years.
Tags: Investment Strategy | Russia | US
