Page 35 - DIY Investor Magazine | Issue 35

THE THE FUNDS BENEFITING FROM THE THE ENERGY CRISIS
Saltydog investor has noticed another period of strong performance for for natural resources funds and is considering investing more into the sector As momentum investors we are always looking for trends in in in the markets We want to to invest in in in sectors that are going up and avoid the ones that are going down Unfortunately this year most have been going down It looks like there is going to to be a a a global recession and stock
markets around the world are struggling There was a a a pickup in July when most of the stock
market indices that that we we track went up but that that trend reversed in in August Most are now showing losses after the first eight months of the year This general downturn is is also reflected in the performance of the funds that we we monitor on on a a a a a weekly basis Nearly 90% are lower now than they were at the the the beginning of the the the year and most of the Investment Association sectors are showing losses Fortunately there are are a a a a a few sectors that are are bucking the the trend The The best Latin America is up nearly 20% There are also a a a a a a few sectors where the Investment Association have decided that it is is is not appropriate to calculate an average return This is is is because the group of funds is not considered homogenous and the investment strategies can vary very widely One sector which falls into this category is is Natural Resources and Commodities Earlier in the year we identified a a a number of funds from this sector that were performing well and our demonstration portfolios invested in in a a a couple of them: JPM Natural Resources and TB Guinness Global Energy We also invested in in in the Schroder ISF Global Global Energy fund which is in the Global Global sector These funds had a a a good run until June but then started to go down in value We sold the JPM Natural Resources and Schroder ISF Global Energy funds but held on to TB Guinness Global Energy although we did reduce our holding In the last few weeks it has started to go up again Energy prices have been rising this year partly because demand has returned after the Covid lockdowns and and partly because supply has been restricted due to sanctions on on Russia These three funds benefitted earlier in the year and it it looks like they might now be back on track after the the downturn in in the the summer We will be keeping a a close eye on them and are considering adding to our current holding or maybe going back into one of the funds that we sold in in June For more information about Saltydog or or or or to take the 2-month free trial go to to www saltydoginvestor com 35
· Oct 2022 DIY Investor Magazine