Historical Perspectives on Equities and the Great Rotation

January was the best month for the FTSE 100 index for 24 years with a gain of 6.4%. Elsewhere global markets posted strong returns. It is worth however taking a longer term view and I came across an excellent chart of the performance of the FTSE All Share Index over 50 years since inception to April 2012: http://www.telegraph.co.uk/finance/markets/9196093/Graphic-50-years-of-the-FTSE-All-Share-index.html The FTSE …

Equity Rally, Equity Income & Monsters

It has been an excellent month for global stockmarkets following the last minute compromise deal on the US fiscal cliff. So far my recent decision to allocate my pension fund cash to equities has proved a good one. That said I sense the rally will run into headwinds perhaps in the second quarter, mindful of the old adage “sell in …

Looking Back, Looking Forward

At the start of the New Year it is worth reviewing how the last 12 months has fared for investors as well as looking forward to 2013. Global markets have rallied in the second half of 2012; financial stocks in particular had a positively balmy year. In July the President of the European Central Bank, Mario Draghi promised to do …

Expectation of Future Investment Returns

In the same week I have seen polar opposite opinions on expectations for future returns from equities. According to Citigroup the FTSE 100 index will double in value in the next 10 years. That takes some faith given the index is still trading at around 1,000 below its December 1999 peak of 6,930. The drivers will be earnings growth, strong …