Other investing strategies are available: Performance chasing has served well despite risks

'Perhaps not surprisingly in such momentum-driven markets, performance chasing came out top'

clock • 4 min read

Laith Khalaf compares egg spreaders with performance chasers in his latest column for PA as he explores the outcomes of different investment approaches...

One of the basic tenets of investment is not to buy an asset just because its price has gone up.  And yet in the last decade, performance chasing has been a much better strategy than buying investments which have seen their prices fall sharply – ­­­a blind bargain-hunting approach which appeals to many people, but comes with its own health warnings.  AJ Bell has put five common investing strategies to the test to see how they stacked up against each other (see table below). Perhaps not surprisingly in such momentum-driven markets, performance chasing came out top, with bargain-hunt...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Asia's broadening investment story

Darius McDermott: Asia's broadening investment story

Fund managers have a dilemma

Darius McDermott
clock 21 October 2026 • 5 min read
China's historic move away from coal shows why investors need to keep digging

China's historic move away from coal shows why investors need to keep digging

'A key challenge for investors is to identify the pockets of genuine innovation'

Xin-Yao Ng
clock 19 October 2026 • 4 min read
Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Platform activity stable

Jack Roach
clock 19 October 2026 • 4 min read