Japanese, Euroland and UK shares should not be regarded as long term real asset holdings capable of paying pensions, charitable wage bills or meeting family needs in the future, warns the senior Tory.
"Share markets have remained weak, subject to negative rumours about the Euro, sovereign debt, the slow pace of western economic recovery, Chinese overheating and the after shocks from the banking crisis. For sterling-based investors a typical world index ETF rose by 41% between 10 July 2009 and 25th March 2010, before retreating by a little over 9%. It remains 28% above the July 10 low last year. In contrast, a Japanese index ETF rose by just 18.5% from 10 July to 15 April 2010, before falling by 12%, almost back to where it started. An ETF following the Eurofirst 80 rose by 41.5% to...
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