At 9.30am on Wednesday 1st February 2012 the FTSE closed at 5,744 - a rise of 3.1% on the year so far. This is the best January performance since January 1989, according to Stock Market historians. Statistically rallies in January are a good indicator of market performance for the rest of the year. Since 1945 there have been 45 years out of 67 when the market went up in January. Shares rose in the next 11 months 37 times - and 82% success rate.
Despite volatility of the Stock Market, it had performed surprisingly well against property, even over periods as long as 10 years. With dividends reinvested, the FTSE 100 rose 56.7% over 3 years whilst the Halifax house price index remained flat. Over 5 years the FTSE 100 returned 11% whilst house prices had fallen 13.6%. Over 10 years the FTSE 100 has returned 59.7% whilst house prices rose by 61.9%.
By having your savings actively managed using the principles that we apply to our WRAP computer platform, you can benefit from active monitioring and management of your savings and investments. The methodology we use for picking funds ensures that we use the most statistically consistent performers in both rising and falling markets. Over the past 5 years with the FTSE returning 11%, WRAP has delivered cumulative growth of 32.89%.
Past performance is not necessarily a good guide to the future. The value of investments can fall as well as rise. The value of monies invested in Unit Linked Funds can fall in value at any time.
Ask your Adviser for more details.
RM Taylor