No doubt we are non-too-happy with the way shares have been behaving the last year. I thought I’d take some time to tabulate yearly return for the Footsie. Figures below:
Year Value Return % 2006 5681 2007 6220 9.5 2008 6457 3.8 2009 4434 -31.3 2010 5412 22.1 2011 5899 9.0 2012 5572 -5.5 2013 5897 5.8 2014 6749 14.4 2015 6547 -3.0 YTD 5874 -10.5
As you can see, we have only seen a worse performance during 2008. 2015 is the only period over the last decade where we have had two successive years of losses. However, if you go back further than this, then the ASX had down years in 200, 2001 and 2002. 2002 was the worst of the three.
The downslide at the turn of the millenium was really on the back of a secular bull market that reached crazy heights. I don’t think the UK is anywhere near the zany valuations as they were back then. The US markets look very stretched, and may prove to be more problematical. The most expensive market appears to be Denmark. Russia is the cheapest.
We haven’t really had a proper bear market for a few years now. I have no idea if Mr Market will deliver a refresher course.