FYI: After a turbulent month or so in equity markets, it is perhaps best to step back and think about just what you're investing in when allocating money to the world's largest stock market indices.
Of course, the argument for putting cash into low-cost funds that track equity indices is that, in the long run, they go up over time. Sure, the basket of stocks may undulate, but the trajectory is pretty much set. Be patient, and you'll be rewarded.
The FTSE 100 — an index of the UK's largest public companies by market capitalisation — is a case in point.
The indices total return (when including reinvested dividends) in the past twenty years has been pretty good — 163 per cent to be exact. Any investor who had the gumption to hold on through both dotcom bubble and the financial crisis has more than doubled their money.
Yet, this has been a pretty good period to invest in equities full stop. Here's how the FTSE's top returns stack up versus the Japan's Topix, the Euro Stoxx 50, Germany's Dax and the US's S&P 500 over the past twenty years:
Regards,
Ted
https://ftalphaville.ft.com/2018/11/15/1542266674000/The-future-of-the-FTSE-100/
