UK equities continue to be an attractive long-term investment despite the current market volatility, according to research by Newton Investment Management.
The research suggests that holding UK equities for a period of more than eight years during the last 108 years has not only produced higher real returns than gilts, but also with lower deviation. Even during periods of short-term volatility in equities, such as the stockmarket crash of 1929, or the bursting of the tech bubble in 2000, equity market performance has tended to even out over time. Jeff Munroe, chief investment officer at Newton, said: "In times of high volatility many investors may consider whether equities remain an appropriate investment vehicle for their savings and pens...
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