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The F T All Share
Index Over The Last 40 Years
Annual Total Returns from
the Financial Times All Share Index
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|
1965 |
12.6% |
1978 |
8.5% |
1991 |
20.7% |
|
1966 |
-4.2% |
1979 |
10.5% |
1992 |
20.5% |
|
1967 |
35.6% |
1980 |
35.4% |
1993 |
28.4% |
|
1968 |
48.7% |
1981 |
13.8% |
1994 |
-5.9% |
|
1969 |
-11.9% |
1982 |
29.2% |
1995 |
23.8% |
|
1970 |
-3.4% |
1983 |
29.2% |
1996 |
16.7% |
|
1971 |
48.3% |
1984 |
32.0% |
1997 |
23.6% |
|
1972 |
15.6% |
1985 |
20.1% |
1998 |
13.8% |
|
1973 |
-28.7% |
1986 |
27.5% |
1999 |
24.2% |
|
1974 |
-51.7% |
1987 |
8.0% |
2000 |
-5.9% |
|
1975 |
152.1% |
1988 |
11.5% |
2001 |
-13.2% |
|
1976 |
2.2% |
1989 |
36.1% |
2002 |
? |
|
1977 |
49.2% |
1990 |
-9.7% |
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Source:
Datastream |
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Supplied By: Gerrard
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The table shows
the average growth across the UK Share Market since the year I
was born. The figures reveal that had you invested one thousand
pounds in 1965 it would have been worth 5,036 at the end of 1979
when Mrs Thatcher came to power, 33,659 at the end of 1989, just
before she left office and 134,808 by the end of the Century. It
also reveals that the huge gain, to a peak at the end of 1999,
would have been reduced to 110,110 by the end of last year and
of course has fallen more since.
By any stretch
of the imagination the figures are impressive. I have also made
some observations that I feel are relevant. After every period
of poor performance the market has soared however, volatility
has been more extreme than I had expected to see. As a result
there will be many people who will have invested ‘at the top of
the market’ only to find that 5 years later they have made
little or no gain. Equally, if you had invested 10,000 at the
end of 1981, 5 years later it would have been worth 33,740 and
10 years later a staggering 60,270.
I am acutely
aware that this will be little or no comfort to those investors
who are currently suffering at the hands of this latest ‘bear’
market. However I hope that the fact that these figures go back
over nearly 40 years will offer some crumbs of comfort.
Furthermore, if you are convinced by the pattern over such a
long period of time and you have money to invest now then
history may suggest that the time is now.
Of course, each
in investor should make decisions based on their personal
circumstances and ensure that any investment is suited to their
attitude to risk.
On a topical
note, it is interesting to see that the index has out performed
the best property. Actual evidence based on what our parents
paid for their houses amply illustrates that average stock
market performance has been more profitable than the most
affluent areas of Monmouthshire, even taking into account recent
market losses and huge rises in house prices.
We of course
understand that there will be specific differences and stress
that our opinions and assertions are based on generalisations
and personal experience only. This is by no means as exhaustive
analysis or comparison of the performance of shares versus house
prices.
October 2002
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