Editor's letter: Like love, fund selection is complicated

Energy funds are doing well

Today is Valentine’s Day, the time of the year that the financial media writes tenuously-linked articles about ‘most loved stocks’ or ‘funds to fall in love with’.

You will be pleased to know that this week's editor's letter is no different, but with the caveat that one firm or one spokesperson's favoured investments are not necessarily helpful to investors. It is also not helpful to look at the best-performing sectors and deduce that they are the ‘most loved' at the moment. An example of this is the top-performing UT Commodity/Natural Resources sector, which has been hitting headlines following soaring energy prices, inflation and a style rotation towards value assets. It is easy to glance across the canteen and presume they are the high sch...