Who Will Make You Money in a Flat Market?

Developed market equity investors have benefitted from five years of stellar returns, but now the market is due a correction what are your options?

Emma Wall 13 June, 2014 | 2:47PM

If you had been brave enough to have invested in the S&P 500 five years ago – you would have doubled your money. If you had chosen to put money in the FTSE 100 instead a £1,000 investment would now be worth £1,600. Risk taking contrarian investors may even have been savvy enough to buy European stocks in 2009 – and would have been rewarded with a 60% rally.

In short, it has been easy to make money if you’d been invested in developed market equities since the global recession. Index trackers and actively managed funds both have made considerable gains.

But after a five-year rally, many professional investors are nervous. Marcus Brookes, multi-asset manager at Schroders said both bonds and equities are due a correction over the next year.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AXA Framlington UK Select Opps R Acc3,282.03 GBP-0.30
Franklin UK Mid Cap A Inc5.48 GBP0.30
Invesco UK Focus UK Acc206.51 GBP0.78
JPM UK Dynamic A Net Acc1.59 GBP0.38
M&G Recovery GBP A Acc242.27 GBP0.67

About Author

Emma Wall  is former Senior International Editor for Morningstar

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