The perils of fashion fads and tank tops - Justin A. Urquhart Stewart's latest

Justin is one of the most recognisable and trusted market commentators on television, radio, and in the press.

Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclays Stockbrokers and developed a unique understanding of the market’s roles and benefits for the private investor.

Each week we will bring you Justin's latest thoughts and commentry.

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THE PERILS OF FASHION FADS AND TANK TOPS

When it comes to watching asset classes year by year it is always amusing to see how this year’s hot tip can so easily become next year’s embarrassment. I have just been looking at a snapshot of the latest year on year change to asset classes and not unsurprisingly a similar pattern is coming out.

In 2011, the laggards were Private Equity, along with Emerging Market and European Equities all showing double digit losses; meanwhile it was Gold, Gilts and Index Linked that took all the plaudits for being the fashion fads of the year.

So if we roll forward another twelve months and low and behold, Gold has lost much of its lustre and Index Linked has also lost its earlier attractions. Meanwhile it was the unfashionable tank tops that came back again for 2012 with Private Equity up 25%. Emerging Market shares up 17%, and of course the most unfashionable of all – European shares up nearly 15% - with of course the most unloved of all – Greece, where the Athens Stock Exchange General index was up a remarkable total return of over 38%.

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