posted by Matthew @ 2/03/2003 04:40:00 PM
Comments: 0
Monday, February 03, 2003
The Ft-se All Share, the widest measure of the UK stock market, is lower in real terms than it was in 1969. In fact it is lower in real terms than it was in 1900 as well. This of course does not mean shares have been a bad investment, as it does not include dividends, nor does it mean that the capitalisation of the UK corporate sector is less than it was in 1900, as there are many more shares around than there were in 1900 or 1969. But it does mean an investor who didn't reinvest his dividends would be sitting on a real loss when adjusted for inflation.