Momentum dominates in 2018 - Half-year Guru Strategies review

Thursday, Jul 05 2018 by
36
Momentum dominates in 2018  Halfyear Guru Strategies review

2017 was a strong year for the 60 guru-inspired investment strategies tracked by Stockopedia - but they’ve come under pressure in the first half of 2018. After last year’s benign market conditions, uncertainty set in during February and March. On reflection it barely registered as a correction, yet the sense of unease at the time was very real. It seems many investors, analysts and commentators are expecting a significant drop sooner rather than later - but what we got in February wasn’t it.

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Last year it was growth and momentum that were the big investment style winners. Even value strategies started to fire again after a long spell on the sidelines. That was particularly driven by rising commodity prices pushing up the valuations of a lot of mining and energy stocks. From a market perspective, it was smaller shares and small-cap indices that led the way in 2017.

In 2018, some of those trends have continued. The Alternative Investment Market hit a new five-year high in June. Meanwhile, the index of the largest 100 AIM stocks rose by 17.5 percent during the first six months. AIM has historically been quite sensitive to investor confidence, so on the current evidence it appears that sentiment is still pretty upbeat.

Index / Strategy Composite

H1 2018

12 Months Performance

FTSE 100

+0.6pc

+3.9pc

FTSE All Share

-0.8pc

+4.0pc

FTSE 250

+0.5pc

+7.7pc

FTSE SmallCap XIT

-1.5pc

+3.6pc

AIM 100

+5.1pc

+17.5pc

AIM All Share

+3.1pc

+12.2pc

S&P 500 (U.S.)

+1.7pc

+12.3pc

FTSEurofirst 300 (Europe)

-3.9pc

-0.7pc

Guru Strategy Composite

+2.4pc

+13.0pc

Growth Composite

+2.2pc

+13.7pc

Momentum Composite

+5.9pc

+20.5pc

Bargain Composite

+10.5pc

+24.2pc

Value Composite

+1.6pc

+11.2pc

Quality Composite

-4.3pc

+8.8pc

Income Composite

+0.4pc

+2.3pc

About the Guru Strategies

We’re now in the seventh year of tracking the Guru Strategies in the UK, with slightly less history for Europe and the States. Over time, these models have become a useful way of seeing what’s working in the market, and how different styles react to different conditions.

Not only do they show what’s working, but they also show when trends start to change. They cover a range of approaches used by some of the world’s best known investors. Each one is classified under a specific style - ranging from Quality, Growth, Value, Bargain, Income and Momentum.

In terms of the mechanics, each strategy has its own set of rules, and we constantly screen the market for…

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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5 Comments on this Article show/hide all

michael john brown 5th Jul 1 of 5

Please can you tell me,is it possible to sieve for your SUPER STOCKS,and is it possible to sieve for comparison grading or the sectors,I want to monitor top raked stocks in the top quartile of sectors and do you have available monthly gradings for sectors so as to show rising and falling...lke top 20 no 1 down. Any thoughts or ideas/Kind Regards, Michael.

| Link | Share | 2 replies
Nick Ray 5th Jul 2 of 5
1

In reply to post #380109

Super stocks: click on "Style" and select "Super stocks" here:

https://www.stockopedia.com/stockranks/

Sectors ranked by whatever you like:

https://www.stockopedia.com/sectors/?region=&type=economicSector

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David Bagley 5th Jul 3 of 5

No comment on the Screen of Screens - which seems to cover a lot of the bases here. Do you model that (can you model it) and, if so, what is the view?

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andrewdb 6th Jul 4 of 5
1

You do not include dividends.

All things being equal, doesn't that mean the income screen will always underperform?

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lexington 9th Jul 5 of 5

In reply to post #380109

The best way to do this is by creating a Screen.
Screens > Create a Screen > Add a New Rule >
+Style / Risk / Size
+Sectors / Industries
Etc.
Not sure about seeing historic rises and falls though. You can see that per stock but that's probably not what you're after:
- Choose a Stock Report
- Click the down arrow next to 'Print' to see historic Stock Reports
Hope some of that helps.

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