Equities Outperform for the First Time in Four Years

Equities were the best performing asset class last year, comfortably outperforming the returns on gilts and cash, according to Credit Suisse First Boston’s (CSFB) annual Equity Gilt Study. For the first time in four years, equities provided a positive return in 2003, ending what had been the longest period for negative returns for more than half a century, according to the report. Commenting on the findings, Robert Jukes, equity strategist at CSFB, said: ‘While long run equity returns remain impressive, the past few years have taught us nothing if not that the volatility of equity returns are such that other asset classes can outperform significantly over the shorter term. That said, however, the current low interest rate environment may offer equities an unusually high gearing into the current earnings recovery.’


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