Equities Trounce the Competition

Summary


THE stock market's healthy performance in 2006 added weight to evidence accumulated over 107 years that company shares really are the best weapon for long-term savers to beat inflation.

The latest instalment of Barclays Capital's authoritative Equity Gilt Study, published last week, showed that after inflation, UK shares gained well over ten per cent in value last year. This compared with returns on cash of only 0.4 per cent. Government bonds, or gilts, dropped 4.4 per cent.

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Equities Trounce the Competition

Barclays has looked at returns on these asset classes since 1899. Th...

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