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UK Commercial Property REIT though, is exposed to property and to UK commercial pressures as we head into a recession. There’s a bit of a double whammy there. And it’s led to the hardest share price fall and biggest discount of the five. But is commercial property consigned to lifelong poor performance now? Or might the trust have a profitable long-term future pursuing a combination of growth and income?

Ben is an investment writer. He's been managing his own pension and ISA portfolios for a number of years. His approach aims to balance growth and income styles of investing. Investing in tomorrow's world! I'm focused on identifying growth companies with durable business models and sustainable competitive advantages. My specialty is the Technology Sector but eventually, all companies will incorporate technology elements into their businesses. But if the shares are cheaper than the asset value, then we say they’re on a discount. Scottish Mortgage shares are trading on a discount. And right now, it’s a big one. I want to talk about investment trust valuation. And why I think the Scottish Mortgage valuation, in particular, is so low that I wonder if the bargain days can last. Who says the insurance business is having a tough time this year? Judging by the Legal & General share price, most of the big investment firms, I guess. Good forecasts

Contrarian investment trust

The update did point out that “ Ocado Retail is in the early stages of restoring direction and profitability.“

At the moment, it looks to me like there’s a fair bit of optimism already built into the valuation of Rolls-Royce shares. A forecast price-to-earnings ( P/E) ratio for the full year of 30 doesn’t look like a screaming buy to me. Never put off buying cheap shares today in the hope they’ll be cheaper tomorrow. On average, they won’t. Price-to-earnings (P/E) ratios are low, with Aviva at 7.5 and Legal and General on 8.6. Among the banks, Lloyds Banking Group is on a multiple of 6.2, while Barclays‘ is just 5.1. And on that score, I see a forecast price-to-earnings ( P/E) ratio of only 6.5, and set to fall. And there’s a dividend yield of 5% on the cards, also on the up. The firm will also combine some management areas, as a way to “ remove duplication and deliver cost efficiencies.”Forecasts are clouded with uncertainty right now. And I expect the whole financial sector — banks, insurers, investment firms — to stay wobbly until the economy gets closer to normal. Still, in an October trading update, CEO Miles Roberts spoke of a “ robust performance during the first half,” despite the economy this year. And he says the second half should be better than the first. Results soon I’m thinking about Vodafone and BT Group in particular here. Both were a lot more resilient in the face of the pandemic slump, so they have that going for them. And it might not be fair to compare such different businesses. The dividend yield suddenly looks better now too. Forecasts vary, but they indicate around 5% for 2023. And that’s in a tough year. Earnings are predicted to keep growing. And dividends are expected to reach 6.5% by 2025.

So what’s my take on all this? Well I think the fears could keep the Lloyds share price low for quite some time yet. And Lloyds shares might fall even more in the months to come. Thanks to some revolutionary new ideas from Boeing, we could be at the start of a plane design overhaul. Then there are growing green energy pressures. Within the tech sector, there are a number of areas I’m excited about. One is cloud computing. Today, cloud technology is used by a wide range of organisations, from tiny start-ups to multinational enterprises. Yet, realistically, the cloud industry is still in its early stages. Some experts see the industry growing at nearly 20% per year between now and 2030.Despite the big gains in the Marks & Spencer share price of the past year, we still see forecast price-to-earnings ( P/E) ratios of only around 10 or so in the next few years. It’s a bit early to judge the dividend yield yet.