Investors’ Bible predicts doom

The annual Equity Gilt Study from Barclays Capital normally shows shares to be the best investment over extended time periods. But not this time. It looks like we've reached the end of an era.

The annual Equity Gilt Study from Barclays Capital has been "the bible of stockmarket optimists" ever since it was first published in the 1950s, says Damian Reece in The Daily Telegraph. It has always shown that over extended time periods, shares are the best investment. But this year's edition did little to cheer the bulls.

Between 1987 and 2007, UK equities returned an inflation-adjusted 6.7% a year, compared to gilts' 5.1%; over 50 years, shares have gained an annual 7.2% in real terms, compared to 2.4% for gilts.

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