Equities delivering zero capital growth

Professional Adviser
clock

Equities have delivered virtually zero capital growth over the past 250 years, according to Theo Zem...

Equities have delivered virtually zero capital growth over the past 250 years, according to Theo Zemek, co-head of fixed interest at New Star Asset Management. Zemek said a stock market price index from 1750 to date would show that £100 invested in equities at the beginning of the period would still be worth just £100 now, when adjusted for inflation. 'There have been no capital gains in the equity market from 1750 to the present,' she argued. 'This applies in general to both the UK and US and demonstrates there is little truth in the belief equities deliver capital gains.' However...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •