Investing for recovery | 3 Investment Trusts for recovery

While the world continues to battle with high inflation and interest rates, and the chorus of ‘recession is coming!’ grows ever louder, it’s difficult to see how an economic recovery is on anyone’s mind for the foreseeable.

Nevertheless, if there are signs that inflation is peaking, markets may start to anticipate better times ahead and begin to rally. In both the Global Financial Crisis and the COVID-19 pandemic, markets recovered significantly ahead of an improvement in the wider economy. For example, despite the 2008 crash - and in the midst of a deep recession - the FTSE 100 recovered 22.1% in the following year.

Across the pond, if you’d put £1,000 into the S&P 500 in December 2008 and waited until today to cash that in, it’d be worth over £4,515 (at the time of writing). So sometimes it pays to be prepared for the good times ahead even if you’re stuck in the bad times right now.

Of course, this strategy is best suited for longer-term investors, who are happy to sit tight and wait for a while – usually at least 5 years – before they can reap their profit. And as always when it comes to investing, it’s not guaranteed either, so perhaps not your thing if you’re looking for more certainty.

But if investing for economic recovery sounds like something you’re interested in, there are lots of Investment Trusts out there that can help you do it without having to do any of the number-crunching yourself – the fund managers will do it all for you!

We put it to the experts to tell us their top 3 picks for Investment Trusts for Recovery. Scroll down to find out!