There were mixed results from the world’s main share markets in 2014, with the US coming up trumps.
|FTSE 100||– 2.7%|
|FTSE All-Share||– 2.1%|
|Dow Jones Industrial||+ 7.5%|
|Standard & Poor’s 500||+11.3%|
|Nikkei 225||+ 7.3%|
|Euro Stoxx 50||+ 1.2%|
|Hang Seng||+ 1.3%|
|MSCI Emerging Markets (£)||+ 1.3%|
As ever, the raw numbers do not tell the whole story:
- Once dividends are taken into account, the UK market achieved a small positive overall return.
- In a change from 2013, there was little difference between the performance of the large company dominated FTSE 100, the FTSE 250 containing medium-sized companies and the FTSE Small Cap, which covers the smallest companies.
- Sterling had a good year, which reduced the returns for UK investors in many foreign markets. The pound was up 7.4% against the Japanese Yen and 7.2% against the Euro. However the dollar was even stronger than the pound: the greenback rose by 6.2% against sterling.
- Emerging markets had a better year than might have been expected, given the problems with plummeting commodity prices and the R in BRICs.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
16th January 2015