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It's been a bit of a lost decade for equities in the UK if you are looking for growth
It's been a bit of a lost decade for equities in the UK if you are looking for growth. Over the weekend, I compared the FTSE 100 with the S&P 500. What's to blame? Is it the lack of rapidly growing tech stocks, or perhaps Brexit? It might simply be that the S&P 500 is massive, offering greater liquidity and potentially, more growth opportunities than the FTSE 100.
To be fair, the FTSE 100 probably offers more than just growth. It boasts a number of companies in the energy sector and consumer staples that pay rich dividends. So, perhaps this comparison should have been based on total returns. Dividends are excellent if that’s your goal. It seems that's what UK investors prefer. However, dividends do draw out equity from a company when paid and don’t necessarily foster future growth. Essentially, the UK isn't just a story of stunted growth; its economy is flagging too.
Source: Eeagli
Coming up:
Inflation across the Eurozone
Market expectations of interest rates in the UK
And now market expectations for interest rates in the US
50 years of video game revenue
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