Saturday, December 11, 2010

Investment Trusts worth a look

One thing I have noticed when looking for UK stocks on my scans is that a lot of Investment Trusts crop up. These appear to have a lot going for them in that the intra-day moves are fairly minimal, but the trends seem to be persistent. These therefore fit the ideal criteria for trend followers in that their market state is classed as both quiet and trending (refer to this post).

The only downside appears to be that the bid/ask spread can be a bit wider than that of standard equities, however the positives seem to outweigh this.

Three examples, which are fairly typical:

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