Personal Finance: Private Investors Make a Return to Equity Markets

The Birmingham Post (England), October 18, 2003 | Go to article overview

Personal Finance: Private Investors Make a Return to Equity Markets


Byline: Peter Axon

A t long last private investors are returning to equity markets. Many have seen a ray of light at the end of the tunnel which they regard as a signal that the prolonged global economic recession is coming to an end.

Therefore, financial experts see this as the ideal time to commence a confidence building exercise.

Share prices have risen vigorously over the past six months. Since the 2003 low-point on March 12, equity market sectors have bounced at different rates.

If you thought the FTSE 100 index was having a robust run, take a look at small and medium-sized companies.

While the index of the largest UK firms is up by about 15 per cent, the 250 index of medium-sized companies has jumped by 45 per cent. However, the small company index is top of the pack with a rise of more than 50 per cent.

What's more, this is not a sudden occurrence. The tiddlers have been outpacing the titans for much of the three years since the money markets hit their peak. In particular, the small fry have distributed some strong profits to shareholders. Those investors who have been tempted to dip their toes again into equity funds will be interested to peruse stock tables.

For instance, performance calculations by independent statisticians Standard and Poor's include initial costs and basic rate tax on individuals. So, investors who hold units inside individual savings accounts (ISAs) and personal equity plans (PEPs) have fared even better.

Also, purchases via low setting-up charges provided by discount brokers and fund supermarkets have reaped their reward.

Since the spring, people have started betting on a more general economic recovery, fuelled by a determined approach in the United States.

There are signs that it could be working. Investors over here have been encouraged to buy cyclical shares - like engineering, chemical and natural resource companies - all of which quickly gather the benefits of growth.

During the recent depressing years, the FTSE 100 has been dominated by financial companies and defensive stocks like food manufacturers and tobacco products. It's good to see that the pendulum is swinging the other way.

A prime example of a change in fortunes is shown by healthcare funds. These are back in the pink and set to thrive.

Only three years ago these shares were the flavour of the market. But, apart from the world economic downturn, medicalbased equities suffered from three severe setbacks.

Tighter industry controls regulating new drugs was accompanied with a rash of pharmaceutical firms chasing similar products. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Personal Finance: Private Investors Make a Return to Equity Markets
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.