- Investment trust discounts have ballooned out again as market gloom persists
- We look at some of the most compelling picks
Last month was a reminder of the hidden risks that investors can sometimes encounter. The banking crisis plunged markets into chaos, and while some of the immediate anxiety has faded, the possibility of a recession still lurks on the horizon and the economic outlook remains downbeat. The temptation for investors to simply hunker down and sit in defensive assets – or go to cash – can be enormous.
And yet an easily forgetten lesson from history is that this kind of gloom can offer up great opportunities for the long-term investor. The improved entry points that have emerged over the past 18 months are arguably a testament to that – despite recovering from last year's lows, many once beloved shares in the UK and overseas are still trading well below near-term peaks. Higher interest rates do not automatically mean that shares' previous heights are irrecoverable.