So the FTSE ended the year on a high and some would say, ‘why didn’t we just invest in the FTSE?’ But, as always, what is reported is never the whole truth.
The FTSE ended the year at 7142.83, recovering from its slump to the highs we saw at the end of 2015. But is this good?
Well, considering it was just below the 7000 mark back in the years 1999/2000, then you could say it hasn’t made anything in almost 18 years! Like any other investment, it has its ups and downs, and so you could get lucky and invest at a low point and sell at a high point. But this is a dangerous strategy and highly unlikely to be achievable.
So, if you had invested in the FTSE from 1999 until today, other than the dividends you received (approx. 2%) you would have made next to nothing. And that is why we don’t just invest in the FTSE, because if it was that easy everyone would be doing it.
As you know following a sound, well thought through and robust investment philosophy based around Market Return portfolio’s on a global asset allocation basis is a strategy which is academically and evidence proven and which you have adopted through our advice. Pleaseclick here to see a copy of the Polestar Investment Philosophy.