You remember Ritchie’s pension plan?

The one that looked at Footsie and didn’t include dividends? Thus concluding that bonds were a better place for pensions cash?

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.

A truly great financial analysis by Ritchie and Colin Hines there, eh?

2 thoughts on “You remember Ritchie’s pension plan?”

  1. “total returns that have just beaten safer assets such as cash and Government bonds”: to be fair, those taking on the risk of equities probably hoped to do better than “just” beating the safer assets. The wise birds, of course, sold their equities in 1999. Ho yuss.

    That was the easy bit: but when should one have bought again? Much harder.

  2. @ dearieme
    The wise birds sold well before 1/1/2000 and missed out on the utterly irrational market peak. However buying back in 2003 was not that difficult.

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