• Believes after a long period of under performance now is a good time for investors to look at larg...
• Believes after a long period of under performance now is a good time for investors to look at large caps.
• The large cap market is going up and, as the sector area has lagged behind mid and small cap indices, from a risk reward point of view it could be quite a good time to invest.
• Global central banks' fiscal policy and interest rates have been very supportive of the market. As a result there is a lot of liquidity available, which ultimately turns up in assets of which the large cap area of the market is a natural home.
• When looking at a business model, investors need to consider the cashflow return on equity as this is what a company can provide to shareholders.
• Between 1987 and 1 April 2003 the FTSE 100 has returned 133.8% against a 55.8% return from the FTSE Small Cap (ex-ITs).
The FTSE 100 has evolved into a different model over the last three years. In 2002 neither utilities nor beverages were part of the top 10 groups in the FTSE 100, they are now ranked 10 and seven respectively as at May 2003.
Partner Insight: Continuing the Architas education series for clients.
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews