Holding on to UK equities for a decade can render market volatility virtually insignificant, Newton Investment Management says.
The asset manager says research suggests holding UK equities for a period of more than eight years during the last 108 years has not only produced higher real returns than government bonds (gilts), but also with lower deviation. Despite short episodes of volatility, the performance of the equity market has evened out through time, it adds. Jeff Munroe, chief investment officer at Newton, says: "In times of high volatility many investors may consider whether equities remain an appropriate investment vehicle for their savings and pension plans. "However, it's a fundamental principle of lon...
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