FTSE 100
Dow Jones

Monday, 27 October 2008

Labour is bad for your wealth

An interesting graph showing the average return on the FTSE since 1984. This shows the cumulative annualised growth of the FTSE (ln(fn/f0)/n) where f0 is the value of the FTSE in April 2004 and fn is the value of the FTSE n (possibly fractional) years later. I omitted the first 3 years which showed very high returns, but cumulative growth averaged out at 10% throughout the Conservative government, but fell away so that total growth between 1994 and 2008 is now only an average of 5% per year.

Here is another view, showing a rolling 10 year growth of the FTSE:

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