Investment Lesson: 1955 – 2011

Time for reflection… let’s look at the performance of the largest 750 companies listed on the UK stockmarket; FTSE All-Share Index from February 1955 to June 2011.

Investors can draw two lessons.

First, since 1955, bull markets in the FTSE All-Share Index have lasted longer than bear markets and delivered gains that are disproportionately greater than the bear market losses. Second, the importance of maintaining a disciplined investment approach that views market events and trends from a long-term perspective. Investors who react emotionally to short-term movements are at risk of making ill-timed decisions that compromise long-term performance.

Duncan R Glassey
Senior Partner – Wealthflow LLP

duncan.glassey@wealthflow.com

This article is distributed for educational purposes and should not be considered investment advice or an offer of any product for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. Past performance is not indicative of future results and no representation is made that the stated results will be replicated. Errors and omissions excepted.