“It is a truth universally acknowledged that equities will always go up in the long run,” says Philip Coggan in the Financial Times. Yet the FTSE 100 has gone virtually nowhere since 2000. Even when you count reinvested dividends, the annualised total return of 3.3% in the 20 years to the end of last year is underwhelming.
True, the dotcom bubble was at its height around the turn of the millennium. But US indices, which also experienced that boom, are up roughly threefold since then. The UK index lacks the kind of exciting tech companies that have set the world on fire over the last two decades.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Is property investment still as safe as houses? Why golden era could be overThe golden era of property is over and investors are better off in the stock market, new research suggests
-
What Santander’s takeover of TSB means for customersSantander is set to buy rival TSB for £2.65 billion. What does it mean for customers, and could we see the TSB brand disappear from the high street?
-
Aim has missed its target – will it recover?Aim, London's junior stock market, has become less appealing to investors amid scandals and an upcoming inheritance tax blow next April. Will it make a turnaround?
-
Investors remain calm as the Middle East war unfoldsConflict in the Middle East has failed to shake oil or stock markets. Can the peace hold?
-
London's new private stock market Pisces 'faces three big problems'Opinion The Pisces exchange may fill a gap in the market, but it won’t address the real problem, says Matthew Lynn
-
Spectra Systems: a 'boffin-led' tech stock with business acumenOpinion Patient investors will get paid well as they wait for success from Spectra Systems, a promising Aim stock, says Jamie Ward
-
How amateur investors could rescue UK stocksPrivate investors must be the beneficiaries of a stock market recovery, says Bruce Packard – not brokers and fund managers
-
The British railway industry is in rude health – here's why investors should jump aboardThe railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
A cyclical case for UK stocksOpinion Depressed margins and relatively low valuations mean the UK market could rally strongly as conditions improve, says Cris Sholto Heaton.
-
Aberforth Smaller Companies Trust: a fund that lets you buy Britain on a triple discountOpinion If UK stocks return to favour, Aberforth Smaller Companies Trust, a value-focused investment trust, should perform well, says Max King
