With more than a whiff of spring in the air, gardeners are busy potting and planting, whilst the road cycling fraternity are busy digging out their lycra and preparing their bikes for the opportunity to increase blood pressure as they climb and descend the steep inclines of the UK. Here in York, the Vale of York provides a plateau for flat racing but in Dorking the gradient all riders yearn for is provided by Box Hill.

Now you might be wondering what Box Hill and the financial markets have in common?

The answer is clear when you compare the gradient of Box Hill with the Peloton share price over the last twelve months.

Evidently, both offer an exhilarating challenge for the cycling enthusiast. From a peak of 211m the decline of Box Hill requires focus and concentration, not to mention a strong set of brakes. For Peloton, the decline from $171 to $20 represents a decline of 89%. Equally hair-raising but Box Hill has the satisfaction of refreshments at The Water Mill on arrival at the bottom.

Peloton remains a very good product, encouraging the fitness fanatic to pay a monthly subscription, after a substantial initial down payment, and will continue to attract many followers. Here the comparison stops. A good company is not always a good investment if the valuation has reached its peak.

Cycling will remain a sport on the rise but like investments, it might be wise to focus on the important components, like the Japanese company Shimano, the world leader in brakes and gears for bikes.

In investment terms, we call this investing in the ‘picks and shovels’, where we see plenty of opportunities despite the current negative issues in the news.