Fowler says equities could lose up to 40%

Equity investors must get used to the fact there is a 40% chance of them losing money in any one year, according to Axa Investment Managers. The group's head of UK equities Stuart Fowler said this percentage figure assumes returns of 7% per year moving forward and 25% per year volatility. He said: 'The long bull market in the last 25 years of the 20th Century led many people to ascribe attributes to equities that are no longer relevant.' In that period, there were only two down years for markets. The 1990s saw an annualised return of 15.1%, compared with 18.8% for the 1980s and 14.2%...