Why investing makes sense
Despite the short term fluctuations caused by market disruptions, history shows that investing in assets such as equities, bonds and commercial property has proved the best way to grow capital and protect it from inflation over the long term. The chart below is on a cumulative basis:
Source: Bloomberg/financial Express. Data from 1 January 1987 to 31 December 2021. All figures are calculated on a total return basis which includes the reinvestment of income. Equities are represented by the FTSE All Share Index. Bonds are represented by the FTSE Gilts All Stocks Index. Cash is represented by the Bank of England Base Rate. Property is represented by the MSCI UK Monthly Benchmark. lnflation is measured by the Retail Prices Index.
Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. *The MSCI Property index returns are to the end of 2019 as the daily 2020 data is currently unavailable.
Source: London Stock Exchange Group plc and its group undertakings (collectively, the ‘’LSE Group”). © LSE Group 2022. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE Russell®” is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permicted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. The
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St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 lFP, United Kingdom. Registered in England Number 4113955. SJP3951 B1 V1 08/22 £100,000 £317, 700 £467, 647 £1, 129, 016 £1, 809, 070 £200,000 £300,000 £400,000 £500,000 £600,000 £700,000 £800,000 £900,000 £1,000,000 £1,100,000 £1,200,000 £1,300,000 £1,400,000 £1,500,000 £1,600,000 £1,700,000 £1,800,000 £1, 794, 449 Black Monday 1987 First Gulf War 1990 ERM crisis 1992 Asian currency crisis 1997 LTCM failure 1998 September 11th 2001 Subprime loan problems emerge 2007 Lehman Brothers collapse 2008 European sovereign debt crisis 2010 USA loses its ‘AAA’ credit rating 2011 China slowdown 2015 Fed rising US interest rates 2018 Trade war tension 2018 Coronavirus Dot com peak 2000 Invasion of Iraq 2003 Discrete 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Equities 8.4% 11.5% 36.1% -9.7% 20.8% 20.5% 28.4% -5.8% 23.9% 16.7% 23.6% 13.8% 24.2% -5.9% -13.3% -22.7% 20.9% 12.8% 22.0% 16.8% 5.3% -29.9% 30.1% 14.5% -3.9% 12.2% 20.8% 1.2% 1.0% 16.8% 12.0% -9.5% 19.2% -9.8% 18.32% Property 25.8% 29.0% 14.7% -8.0% -4.1% -1.6% 19.8% 12.4% 3.7% 10.0% 16.7% 11.3% 14.3% 11.0% 6.9% 9.9% 11.0% 18.2% 18.8% 18.0% -3.9% -22.2% 3.6% 15.1% 7.7% 2.7% 10.6% 18.1% 13.1% 3.4% 10.3% 6.0% 1.2% -2.2% 16.2% Bonds 15.3% 6.8% 8.2% 9.6% 16.2% 18.7% 21.0% -6.3% 16.4% 7.3% 14.1% 18.9% -0.9% 8.8% 3.0% 9.3% 2.1% 6.6% 7.9% 0.7% 5.3% 12.8% -1.2% 7.2% 14.8% 2.5% -3.9% 13.9% 0.2% 10.1% 1.8% 0.6% 6.9% 8.3% -5.2% Cash 9.6% 9.9% 13.6% 14.7% 11.5% 9.5% 5.9% 5.3% 6.5% 5.9% 6.5% 7.2% 5.3% 6.0% 5.2% 4.0% 3.7% 4.4% 4.6% 4.6% 5.5% 4.7% 0.7% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.4% 0.3% 0.6% 0.8% 0.2% 0.1% Inflation 4.1% 6.4% 7.7% 9.7% 4.3% 3.0% 1.4% 2.6% 3.1% 2.7% 3.7% 3.0% 1.4% 3.2% 0.9% 2.6% 2.5% 3.4% 2.4% 3.9% 4.3% 3.0% 0.3% 4.7% 5.2% 3.1% 2.7% 1.6% 1.2% 1.6% 4.1% 2.7% 2.2% 1.2% 7.5% Only cash deposited with a bank or building society can provide the security of the capital invested. Please be aware that past performance is not indicative of future performance.
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