A mixed year for equity markets
1st January 2015
There were mixed results from the world’s main share markets in 2014, with the US coming up trumps
Index | 2014 Change |
FTSE100 | - 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.