A matter of taste

Article Abstract:

British stocks are likely to offer a pre-tax return of 7.1% over the long run. National income is forecast to rise by 5% annually, so a net yield of 2.1% in the FTSE All-Share index gives a 7.1% annual return. This gives a 2.4% annual equity risk premium which may not be enough for equity risks, due to the volatility of equity returns. US private sector debt poses problems for the world economy and this means that stocks face risks. It is unclear whether dividends will grow by 5% or more per year, and whether changes in covariances may reduce the level needed for the equity risk premium.

---

Wild trading

Article Abstract:

The British equity market has been volatile between Christmas 1999 and Easter 2000. There are good reasons for considering old economy stocks which have become unfashionable, especially when these are quality stocks.

---

Less time for settlement

Article Abstract:

Changes in the British stock settlement cycle, and their impact on private investors are examined in detail.

Similar abstracts:

• Abstracts: Getting ready for self-assessment. Pruning reliefs. Tax: what a carry on
• Abstracts: Investing in the land of plenty. Still vulnerable. Dragons apparent
• Abstracts: Six ways to speculate. Cash in. When the Dow dives
• Abstracts: Wall St's real interest rate hope. A rate of interest. As a matter of interest
• Abstracts: World recession no, trouble yes. Why cheapness isn't everything. Wall Street's recession warning

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.