asset class returns

Here’s some handy data on historical asset class returns for the UK.

Should we stay out of the market after a bad run for our investments? Or do outsized profits await those who wade in when things look bleakest?

Why now is almost always the right time to invest.

Sequence of returns risk is the risk that exactly when you withdraw money from a portfolio can adversely affect your returns.

Some of the finest minds in finance profoundly disagree about what return we can expect from our investments in the decades ahead, so err on the side of caution.

You could bet on the future with index-tracking ETFs even back in Ye Olden days of 2009. How did it work out?

How have passive investors in the global market fared over the past 10 years?

Don’t be scared out of stocks by short-term fluctuations if you’re investing for the long-term. Over time things even out.

What’s the worst mauling you can take at the hands of the stock market?

This table of UK asset class returns over the past 15 years brings to mind my love life over the same time period – incredible highs followed by miserable lows!

Should you splash out on a Ferrari or would you be better laying down a cellar of fine bordeaux wines? Choices choices…

Always be alert to the different ways in which large numbers can be (mis)interpreted when trying to make sense of the world. Never forget: You’re an upgraded ape with delusions of grandeur, designed to hunt gazelles and run away from lions. You’re prone to fear and greed, you love being in with the crowd, and [...]

How big are return premiums like value and small cap? Are they worth the risk?

There’s nothing wrong with regulators lowering financial expectations, except the timing. The time to be afraid is when everyone is happy, not when they’ve given up.

The FSA has drastically cut its projected growth rates for investments. Are you saving enough to meet your pension forecast in a low-growth world?

Asset classes, sectors, and styles all come in and out of both fashion and genuine prosperity, depending on the underlying cycles. So never say never again.

After knocking off half a bottle of port and some over-ripe Stilton, I had the most peculiar dream. Share prices actually went up for a decade – and stayed up!