Posted by jdavis on December 24, 2014
About the biggest asset in pension funds is shares in the FTSE 100 index.
So, what happens to this asset will have a major effect on the success or otherwise of long term investment portfolios.
What has happened to the FTSE is NO GROWTH for 19 months and none for nearly 15 years...
The curious thing is this asset class has been the sector with the most new money invested over the last year - at the highs. Clearly, investors - or their advisers - are forecasting that the prices will rise from here, the highest points over 15 years, 3 times - today, 2007 and 1999.
On verra. But what a risky bet?
This, in a year when UK Gilts went to all time highs. Normally, when Government Bonds rise sustainably, this is a bad omen for share prices.