Trustnet Magazine 69 January 2021 | Page 6

Not a basket case “ The UK index has perennially been one of the highest yielding globally , a function of the historic demand for income funds here ,” he says . “ Adjusting for this , investors would have nearly doubled their starting capital had they invested at peak price , with a 91 per cent return annualised to 3.1 per cent – effectively pure income . This is very similar to the headline European index , the Stoxx 600 , annualising at 3.3 per cent over two decades , and Japan at 3.2 per cent . “ Rather than the UK being the basket case , the S & P has simply PRICE PERFORMANCE OF INDICES SINCE 1999

Markets don ’ t move in a straight line and in the context of the economic havoc wreaked by the coronavirus , a yearly drop that is barely into double digits is far from a disaster

PRICE PERFORMANCE OF INDICES SINCE 1999