The only fund that went up last week

by Douglas Chadwick from interactive investor |

With markets suffering another setback, the Saltydog analyst reveals his only winner week-on-week.

This content is provided by Saltydog Investor. It is a third-party supplier and not part of interactive investor. It is provided for information only and does not constitute a personal recommendation.

US/China trade wars rock the markets

Last Friday, the US increased the tariffs on $200 billion (£153.7 billion) of Chinese goods from 10% to 25%. This wasn't totally unexpected. The original plan was for the new tariffs to be imposed at the beginning of this year, but they were delayed and it looked as though China and America would come to some form of compromise.

It appears that Mr Trump decided that the talks with Beijing weren't progressing quickly enough and so the hike has now gone ahead. He is also talking about further tariffs on all the remaining imports from China, which are valued at approximately $300 billion.

China has threatened to retaliate.

Over the last couple of weeks, the US and Chinese stock markets suffered as the trade war intensified. This has had knock-on effects all around the world. In the UK, the FTSE 100 index has dropped 4% from the year to date high that we saw at the end of April. 

Data source: Morningstar. Past performance is not a guide to future performance

Even after this recent fall, the FTSE 100 is still up 7% since the beginning of the year and we have seen some other temporary setbacks along the way. There was one at the end of January, one at the end of February, and another at the end of March. On each occasion the market quickly recovered. It might be different this time, but we think that it’s too early to tell at the moment.

Last week we didn't make any changes to our demonstration portfolios, even though they had gone down and wiped out the gains from the previous week. Although a significant number of the Investment Association sectors were reporting one-week losses, most were still up over the previous four weeks. It will be interesting to see what this week’s data reveals.

When we reviewed the portfolios last Wednesday, there was only one fund that we were holding which had gone up since the previous week and that was the TM Cavendish AIM fund. It had gone up by 0.7% in a week, and still featured in our four-week and 26-week data tables.

Data source: Morningstar. Past performance is not a guide to future performance

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These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article

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