While equities have been best-performing asset class, outperformance is only negligible at best and ignores share performance of firms which have gone bust
Connoisseurs of financial history will find plenty to enjoy in 'Triumph of the Optimists,' a new book by three London Business School academics, Elroy Dimson, Paul Marsh, and Mike Staunton. For example, in 1900, Russia accounted for 11% of the global value of equities, the same as Germany and Japan combined. They will find a provocative lesson as well. Over the last century, equities have not produced anything like the returns investors have usually assumed. Nobody should expect great returns in the new century either. Shares as an investment have been consistently over-rated. The timin...
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