Game, set and match – how you could have grown your money sevenfold in 25 years


#1

Originally published at: http://whichinvestmenttrust.com/game-set-and-match-how-you-could-have-grown-your-money-sevenfold-in-25-years/
As tennis players seek to correct any weaknesses, investors must also critique their portfolios and make sure it is built for the long-term. That way, investors can be confident that their portfolios are set to win tournaments rather than trying to beat markets in the short-term and only win the odd game. Despite short-term ups…


#2

Equities were only a little ahead of Bonds, I found that surprising.

I wonder why it was measured from 1989-2014 rather than May this year.


#3

looks like it was produced for the year end because it’s up to 31st December and it was only a few months ago.

I’m surprised by how well Bonds have done too but they have been in something of a bull market for a couple of decades. Looks like it’s coming to an end now though!


#4

Bonds have been shares over a number of periods and the reason for it is because you get a fixed coupon which over the life of the bond can exceed the return of the stock market and when held to maturity, so over the long term can result in a more consistent performance than shares.

I don’t think right now is the time to own bonds though, or even just the stock market generally. Nothing is cheap and this as a result is a time to invest with managers who are great stock pickers. Avoid bonds and index funds for now.


#5

Inflation alone during this period would have turned £10k in to £23,972.98 according to the thisismoney.co.uk inflation calculator.

By this measure low risk cash didn’t do too badly either. One thing to note is this survey was conducted just before the tech crash so they haven’t chosen the dates to give themselves an unfair advantage, probably the opposite in actual fact.