The fear must be that, as usual, thousands of investors – often the least experienced – will go chasing performance one year or more too late. It would have been better if the best-selling years had been the last two or three.
It is difficult to assess the markets at present. It feels that opinion is divided across several sectors. It looks likely that UK All companies, equity income and commercial property will prove to be the big sellers but the latter asset class at least is giving some cause for concern and there is a lot of heat in emerging markets.
We accept there is merit in the asset-allocation argument but wonder if that is the rationale for many of these investors and suggest that advisers and fund managers try to make sure the investing public are making the right decisions or at least making decisions which are not too bad based on a long term view. The situation is nothing like that of 1999/2000 but the industry needs to least try to break the performance-chasing cycle.