In the days following the sell-off in early August, one of the worst-performing sectors was one of the old defensive favourites, utilities.
It is impossible to avoid short-term peaks and troughs in the market, but there are certain traits I look out for when searching for companies that can prosper in all weathers. Stable investor returns are hard to predict, but you can spot financial stability. To my mind, a record of stable earnings and dividend growth is a good place to start, and that tends to be the traditional playbook. Logically speaking, financial stability should correlate with consistency of returns. 'Today is going to be carnage': How funds dealt with a week of market volatility Strong margins are a...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes