Liontrust Views Spring 2023 - Flipbook - Page 11
So how can investors make sure they choose the right investments?
What attitude should they take to risk and how long to invest for?
Building a strategy around life events, sometimes known as
‘lifestage investing’, can help determine the best approach.
Benefits of investing
While having cash reserves is sensible, there are clear benefits to
investing in markets to meet significant financial goals.
As the graph below shows, someone investing in the FTSE All Share
in 1985 would have seen their investment grow by 2,209% at the
end of 2022, compared to growth of 93% for cash savings. Over
this time, the UK Retail Price Index rose by 137% while inflation
grew by 163% – so those with cash savings would have seen their
real value drop considerably.
Source: Liontrust, as at 31.12.22. FTSE All Share, 31.12.85 to 31.12.22.
UK Retail Price Index, 31.01.87 to 31.12.22. Inflation = UK Consumer Price
Index, 29.01.88 to 31.12.22. Cash = SONIA Lending Rate GBP, 31.01.97
to 31.12.22. All use of company logos, images or trademarks are for reference
purposes only.
2015
Chinese
growth scare
2008
Global
Financial crisis
2022
Russia invades
Ukraine
2018
US-China trade
wars start
2,209%
2013
US taper
tantrum
2010
S&P downgrades
Greece’s sovereign
credit rating to junk
2022
Truss
Minibudget
2020
Coronavirus
outbreak
2016
Brexit vote
2014
Opec countries fail
to agree to cut in oil
production
2007
Run on
Northern Rock
2022
Fears of higher
inflation and
rising interest
rates
2018
Red October
163%
137%
93%
2009
Avatar film
released
2006
Twitter
launched
2005
First ever
YouTube
video is
uploaded
2007
Steve Jobs
introduces the
first iPhone
2013
The last series of
Breaking Bad
2011
The last edition of the
News of the World
2018
Thai cave rescue
2015
VW
emissions
scandal
2020
Grandmother in
Coventry receives
1st Covid vaccine
2020
George Floyd’s
death leads to
global protests
2022
RIP Queen
Elizabeth II
2021
Cop26
takes place
in Glasgow
LIONTRUST VIEWS – SPRING
11
