Bottom up approach better for flat markets

growth investing

clock

With returns likely to remain squeezed this year as the economy returns to normal long-term trends, finding the right stocks to back will depend on painstaking research and skillful stockpicking

Let's begin with the basic premise that the reason people choose to invest in the stock market is, over a reasonable period of time, to achieve a return superior to that of other asset classes, in many cases the bank or building society. For this to be the case, the underlying businesses have to be able to generate a return in excess of the opportunity cost of leaving their funds in the bank. After all, if they cannot, they would simply sell up and put the funds into a deposit account. With this in mind, people must therefore be seeking a higher return from investing in the market as they ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Investment Week reveals winners of Fund Manager of the Year Awards 2025

Investment Week reveals winners of Fund Manager of the Year Awards 2025

Celebrating 30th anniversary of Investment Week

Katrina Lloyd
clock 20 June 2025 • 6 min read
Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Piers Hillier and Ed Venner, RLAM
clock 20 June 2025 • 4 min read
Charles Schwab UK's Richard Flynn: Young UK investors leading thematic investing charge

Charles Schwab UK's Richard Flynn: Young UK investors leading thematic investing charge

At a 'tipping point'

Richard Flynn
clock 17 June 2025 • 3 min read
Trustpilot