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Professor Murphy and data sources

I have long argued that pensions need reform. It’s always been my belief that private pension management was for the benefit of the City, not pensioners, and that reforms under Thatcher were always intended to fleece ordinary people by sending wealth upwards through financial institutions at long-term cost to pension returns.

I feel vindicated. If they had invested as I suggested almost twenty years ago this would not have happened and we would now have a Green New Deal.

Hasn’t the time come to end the belief that speculation in financial markets is the basis for providing for old age? As I argued in 2010:

Well, yes. And then we look at that paper of his own he quotes and we see this:

As data published by the organisation promoting the City of London,
TheCityUK, showsxviii, the ten year rate of return on investment in UK stock markets was an average
loss of 2% per annum over the first decade of the twenty first century.

Really? And, by the level of FTSE, yes.

Except:

On New Year’s Eve 1999, the FTSE 100 closed at a then-record high of 6930. Few could have envisaged then that, 19 years on, the index would be lower. It stood at 6845 as at 14 December 2018. A negative return for investors over that long a period can be concerning, but it doesn’t tell the whole story of index returns.

While price-wise the FTSE 100 has fallen since 31 December 1999, if you include dividends the index has actually returned 93.5% over the same period (or 3.54% a year), according to Schroders’ calculations.

Yep, the little fucker used the without dividend return over that 2000 to 2010 period.

See?

Since the FTSE 100’s inception in 1983, there has never been a ten-year holding period where the investor lost money.

Ghastly little fucker

14 thoughts on “Professor Murphy and data sources”

  1. Capt. Potato used the without dividend return over that 2000 to 2010 period.

    Absolutely – this is to allow a realistic comparison with his Green New Impoverishment bonds with a 1% coupon that will always trade at par.

  2. I have a lifetime experience in a very numerate sector of the finance industry. The world is run by morons, their actions critiqued by morons, safer for your sanity to ignore the fuckers. Look after yourself and your loved ones. The rest of the world are heading to hell in a handcart. Happy Monday morning 🙂

  3. “private pension management was for the benefit of the City, not pensioners”

    Surely “City” is just “fund management”, and his assertion holds for his Green New Deal as well.

  4. Bloke in North Dorset

    I’ve been a bit slow, I’ve only just realised he doesn’t understand the basic concept behind saving for a pension over a lifetime: Pound Cost Averaging.

    That’s not even investment 101, if you don’t understand it you don’t get to go to the investment 101 class.

  5. BiND

    I think when it came to Investment 101 his attitude mirrored that to his economics BA. He walked out in the middle of the first session because he disagreed with the concepts being expressed.

    His understanding of finance and financial markets in particular is well below that of most people starting economics GCSE in my opinion.

  6. How old was he when he flounced out? He must have been a supremely confidant 18-year-old if it was as a fresh-faced newly-minted school-leaver. And this would have been the 1970s/80s when you had grants and paid no fees. HE WALKED OUT OF THREE YEARS PAID LOUNGING AROUND????? ON HIS FIRST DAY?????

  7. That’s unfair criticism of Murphy.

    Why should such a precocious talent waste his time learning things that he can see are wrong and are beneath his towering intellect?

    Alternatively maybe his disruptive personality got him banned from the class.

  8. In another of my posts to Spud’s blog intended for his reading rather than thinking they might be published….on pensions.

    “My own pension plans have largely revolved around:

    A diversified portfolio
    Looking long term
    Not losing loads of money by libelling Lord Ashcroft

    It’s worked out very well. If only you had followed the same strategy perhaps you wouldn’t be so bitter.”

  9. Jgh

    I’m fairly sure he simply stopped attending those lectures he didn’t like – his bio shows his degree was in economics and accountancy although there is some speculation as with his professional accountancy qualifications that the actual exams were sat by someone else. Alternatively he has been suffering from advanced amnesia for many years as his blog elicits very minimal understanding of either discipline.

  10. Sam Jones

    Apparently it’s almost impossible to get struck off by the ICAEW. He has been abusing their members (At least the big four) for years on the audit front and it hasn’t dented his profile – that’s before even taking into account that he appears ignorant of GAAP at the fundamental level.

  11. @Van_Patten, strange as the ICAEW sacked and fined the author of FCA blog for a minute fraction of what Murphy does. Does he have something on them?

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