Avoid the Hype, Focus on the Value

Sadly, this sometimes appears to be the modus operandi of the fund management industry with the retail investor the fall guy. Firms work on the principle of ‘if the ducks quack, feed them’ and aggressively promotes areas of the market that have performed strongly, often launching new funds into areas they perceive as ‘easy sells’ to less sophisticated investors. Remember the huge hype of technology funds as we approached the new millennium and the insulting message that ‘you simply don’t get it’ if you thought these stocks were ridiculously overvalued. More recently, the big advertisi...