Many of the alternative asset classes have fallen out of favour and trade at wide discounts to NAV, with the two specialist shipping trusts being a good example.
The equity markets have taken a bit of a knock in recent weeks with the conflict in the Middle East grabbing the headlines and the prospect of lower interest rates being pushed back.
It has been an interesting start to the year with the macro-economic data driving sentiment one way then another creating a challenging environment with many big winners and losers.
The US economy appears to be in very good shape, but that could be a thorn in the side of those reaping the benefits of interest rate cuts.
There is a general consensus that the UK stock market is cheap compared to the US, particularly when you look at value-oriented portfolios.
One area of the market that remains out of favour is the core infrastructure sector, with many of the constituent investment trusts trading at wide double digit discounts.
Investment trusts have been through a difficult period, with poor investor sentiment forcing many well below their net asset value.
The big issue facing investors at the moment is whether the economy will experience a hard or soft landing. Whichever way it plays out will have a huge impact on the performance of the different asset classes.
Investors in the £1.2bn BlackRock World Mining have endured a difficult period with the NAV down 6.2% on a total return basis in 2023.
Nick Sudbury provides an update after Smithson added a continuation vote to its AGM.
