The data that indicates the market and investment trusts are expensive


#1

Originally published at: http://whichinvestmenttrust.com/the-data-that-indicates-the-market-and-investment-trusts-are-expensive/

With the FTSE 100 reaching record highs, I’ve taken a look at how this is effecting investment trusts, and where there might be opportunities to buy trusts cheaper than recent history, and at which trusts are looking expensive. We have looked at Z-score data from sector broker Numis (see inset box explaining Z-scores), to look…


#2

I think this is suggesting it’s not a great time to be putting money to work. I’m surprised Emerging markets trusts don’t appear here.

I’m stuck for ideas of where to put my ISA, I’m hoping for a correction before the end of the tax year but it’s looking like a longshot. I might have go to a cash investment instead because with all these European elections coming this year and the Brexit uncertainty, I don’t have confident when the stock market is reaching ever higher new peaks.


#3

Emerging market trust have actually had not too bad a year @itsallgravy. Also the Z scores they used over measure performance over a 12 month period which isn’t that long, really. I’d be more interested in seeing five or ten year z scores, which I’ve never seen anywhere.

They’re too complicated to calculate yourself, at least they are for me and I don’t know of any website that provides z score calculators.

I’m hoping for a bit of a correction too, but not sure it’s come before tax year end.


#4

This is when it’s handy to be investing monthly so that you kind of smooth out the high’s and lows of the market.

I’d be pushed to invest a lump sum right now.


#5

Many websites (e.g. www.hl.co.uk) will show you the discount over time, so though you might not be able to calculate a zscore, you can at least assess the current discount against the history @harjinder

I think I would go with regular investing over large lump sums at the moment, having said that discounts can still be found in the smaller companies (both UK and European) and private equity sectors.