Stock market performance history ftse

By: Alex 65 rus Date: 16.07.2017

By Ed Monk for Thisismoney. Investors must say thanks for dividends', 'url': Investors have endured a bumpy ride from the UK stock market in the 15 years since the blue chip index hits it's all-time peak, new analysis shows, and have only dividends to thank for total returns that have just beaten safer assets such as cash and Government bonds.

Graphic: 50 years of the FTSE All-Share index - Telegraph

The FTSE hit its highest ever level of 6, on 30 December , at the peak of the technology and dot com boom, and has remained below that bar ever since. It closed on 29 December at 6, But FTSE investors over that time could still be up.

Analysis by Hargreaves Lansdown of the index's performance in the 15 years since the all-time high shows the importance that dividends have in delivering positive returns.

Party like it's The FTSE peaked in the year that Britney Spears launched her debut album, Manchester United won the European Cup and Jerry Springer first hit UK screens.

Comparing the levels of the FTSE index and other main stock market indices over time does not take into account the amount the companies included in them have paid out as dividends. If you include those payouts, then the FTSE is up over the 15 years on a total return basis. Hargreaves crunched its numbers to 16 December, when the market was points lower than the 29 December close.

This is equivalent to a total return over 15 years of 52 per cent. Many index 'tracker' funds invest across all FTSE All Share companies, rather than just the FTSE That is good news for investors, who have seen the FTSE 's big hitters side-swiped.

Returns on the FTSE have suffered because the index includes dominant players form sectors that have suffered as the financial crisis and recession have unfolded. Over the last 15 years the FTSE has endured two prolonged bear markets and two even longer bull runs.

stock market performance history ftse

If on the other you had perfect market timing, you would have invested on 12th March and would have sold on 4th September , making a per cent return. Banks are still to recover ground lost since the credit crunch, while more recently supermarket giants such as Tesco have suffered share price falls in their fight with discount rivals. Fresh pain this year has arrived for the large oil firms and miners in the index. Laith Khalaf, senior analyst at Hargreaves Lansdown, said: The top chart shows the FTSE near it's all-time peak from , but still below it.

The bottom chart shows the effect of reinvesting dividends. Shares vs cash and bonds. Anyone looking back on the past 15 years would be forgiven for concluding that the eventual return delivered by shares has not been worth all the ups and downs.

On an annual basis, the FTSE has delivered an annual return of just 2. While low by historic standards, rates on the best savings accounts have been higher than this.

FTSE Performance | View FTSE stock performance over the last 5 years

Is now a good time to invest? While the level of the index is currently close to the level it was when the market peaked in , this does not mean it currently represents the same value for investors.

One way to establish if a company, or the index it sits in, is good or bad value is to compare the price with the profits being generated. One expression of this is the price to earnings ratio.

AMZN oxicivaru.web.fc2.com Inc Stock Performance of Total and Trailing Returns

In December this was 27 times earnings. In other words, on this measure the market was almost twice as expensive then, despite the FTSE being only 8 per cent higher than it is now. The UK also fared well in our recent round-up of the world's cheapest and most expensive stock markets.

How times have changed. The FTSE has changed a great deal since The telecommunications sector as a whole made up 18 per cent of the FTSE in December whereas it now makes up just 5 per cent. Likewise media stocks, IT hardware stocks and software stocks make up a much smaller part of the FTSE than they did in The now defunct telecoms and engineering company Marconi was the 10th biggest stock in the FTSE , constituting 2 per cent of the index, shortly before it collapsed.

HSBC and BP still remain in the index, whereas GlaxoWellcome became part of what is now GlaxoSmithKline. BT and Vodafone remain in the FTSE but their weighting is 1. The most obvious winner over the period is mining stocks, which now account for almost 9 per cent of the index, up from 3 per cent in The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Queen's Speech is silent on plans for stingier state pension rises - but it's still packed with plans that could affect your finances The middle class borrowers sitting on a debt timebomb: Surge pricing adds hundreds to the cost of your trip Meet the year-old leading Jaguar Land Rover's driverless vehicle charge who has topped the list of Great British Women in the Car Industry DAN HYDE: Britain has been ambushed by a debt crisis, we need to get back in the black From a lab scientist to the UK's best-rated chief executive: Boss of Anglian Water is crowned best CEO by staff - does your leader make the top 50 list?

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stock market performance history ftse

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