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Article: Hunting high and low; Declining share prices may favour high yielding equities, but will investors take the risk?
- Article from:
- Investment Adviser
- Article date:
- February 3, 2003
- Author:
CopyrightCOPYRIGHT 2003 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Richard Hughes
Few equity investors have emerged unscathed from the turbulence of the past three years. Since peaking at 6930 on New Years Eve 1999, the FTSE 100 Index has suffered a decline of about 50 per cent, with many sectors faring much worse.
Defensive and income themes have fared much better than this, although such outperformance was largely relative. Real positive gains were concentrated in the fixed interest market, with 10-year gilts producing a return of 17 per cent over the period.
Nevertheless, the decline of only 16.8 per cent in capital terms from the FTSE 350 Higher Yield index was a notable achievement, illustrating the ...