![]() ![]() That reflects lower growth rates among companies as price inflation falls and competition hots up. The 12% per year total return in that period, even after allowing for inflation, was the best ever in the 100 years covered by Barclays' Equity Gilt Study.Įven the more optimistic commentators say future returns should average around 8%. Bull markets on the scale seen over the last two decades were exceptional. First, don't expect shares to produce the stellar returns they used to. On that basis, this should be the best time to put your Isa allowance into an equity fund. It is better to follow another old stock market adage: the best time to buy is when everyone else is selling. ![]() ![]() Just look at how popular technology trusts and shares started 2000. Research by fund manager Schroders shows that people tend to do the opposite: private investors tend to buy just as the markets are about to fall. If you are brave enough to invest when stock markets are poor and everyone is nervous, over the long term you are likely to do far better than those who pile in only when shares are high. Indeed, all the evidence suggests we are using our hard-earned cash to splash out on new houses, DVD players, designer suits, anything other than shares. So it would be no surprise if investors were wary of adding to their equity holdings. The average unit trust lost 12% of its value, and only 327 of the 1,818 funds made money for investors.Īnyone who invested when the stock market was near its peak could now be sitting on a 25% loss. ![]()
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