Brave to invest now after such a good run and when now trading at a premium.
I sold some (too early!) at around £7 when the discount was heading towards zero. Be aware that if/when the correction comes the things that went up the most are likely to go down the most. I'm probably too cautious in my old age but I will be avoiding ITs until the discounts improve a bit. You could always buy a BG OEIC (cf Monks/SMT portfolios) so that you don't have to worry about the discount widening.
I have held SMT for some years, but last week split that holding into two and put one half into Monks. This was based on the MoneyWeek view that SMT is exposed to any pull back in US major tech stocks.
I see no evidence (I am a chartist) that either SMT or MNKS have peaked, but the long expected major market crash cannot be far away - perhaps 9-15 months hence IMO.
Both Monks and SMT have been going up like a rocket for the last few months.
I have added to SMT but wonder if I've missed the boat to add to Monks?
Only a weak buy recommendation by me due to worries that it may peak soon (or has peaked) as it is down 1p today at 811/813 when the FTSE has topped a new high.
Without that thought it would be a strong buy.
"Launched in 1929, LSE:MNKS:Monks Investment Trust has been managed by Baillie Gifford for around 80 years, and previous manager Gerald Smith ran the portfolio for a decade.Since March 2015, however, the trust has been managed by the ..."
thanks for all your replies to this. My conclusion is to buy Monks with a bit of SMT on the side. But like others here, I don't feel comfortable buying anything at this moment in time (shares or bonds) , so for me it's going to be a long-term drip-feed.
SMT is more volatile; top holdings Amazon & Tesla. Both ITs currently trading on a premium, SMT higher. I continue to hold ATST & Monks due partly to cap gains liability. Re. other global ITs I would be looking at Caledonia which is at a standout discount in the current environment.
I hold both and am pleased by the good rum. SMT undoubtedly helped by the elevation to the FTSE and Monks by the change of manager. Like valeite, I am now slightly concerned as both are trading at a slight premium to NAV and do not intend to increase holdings except perhaps by dividend reinvestment. I always bear in mind what James Goldsmith said about bandwagons when considering completely new investments..........
as a long term holder of both monks and scottish mortgage i start to worry when shares trade at a premium ,as they do now,because you leave yourself open to a double whammy when markets are weak .as well as falling share prices they could revert to trading at a discount .have lightened my holdings recently in favour of uk smaller co's funds ,such hendersons uk sm co's .still ,what a year monks have had (helped by brexit and the change of us president )
since the portfolio was changed we have moved to 4/24 in our sector up nearly 30% since brexit and 47% over 12 months .alas ,brexit has messed up other parts of my portfolio ,mainly uk midcaps i should add .shows the value of spreading risk i suppose
Yes, just spotted the discount, 17% according to http://www.theaic.co.uk/.
Other global IT discounts also up so its not just Monks.
I view Monks as a hold - & hope the discount narrows to sub 10%; there may also be a case for adding to your holding.
"Latest figures out of China show the superpower's pace of growth picked up for the first time in three quarters in the three months to the end of September.Specifically, Chinese GDP growth was up from 7.5% in the second quarter of 2013 to 7.8% in ..."
Browsing over the factsheet reveals a whacking great cash-money market postiton of 41 percent plus with an eight percent gearing overall. Some might read that as a vulture strategy, awaiting a monstrous correction to scoop up a swathe of cheap shares in much the same way as Schroders Mid Cap (SCP) and Scottish Investment Trust (SCIN) did a few years ago. If it works, Mr Smith would be in favour again. pronto.
There is an interesting interview with Gerald Smith in Baillie Gifford's Trust Magazine which I received today. The article includes a chart showing that Monks Investment Trust has underperformed the FTSE World Index in each of the past 5 years. Gerald Smith, the manager, is asked "have you changed the way Monks in run?" to which he answers "No, not really".
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