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SHARES AND MONEY
The highs and lows of the last 50 years
If you wanted your money to work for you over the last 50 years then the place to put it would have been in equities.

According to the Barclays Capital Equity Gilt Study - which has looked at the returns on a number of investments including gilts, equities, cash and bonds since 1900 equities have returned an average of 7.1% a year since 1952. Gilts have returned 1.6% and cash 1.7%.

Very few unit trusts have been running that long but someone who put £100 (today's equivalent would be around £1,700) into its Blue Chip fund would now have more than £35,000. According to M&G's figures its Blue Chip Fund has returned 12.4% a year over the past 50 years while the FTSE All-share index returned 12.3%.

If you had put your cash on deposit you would have been worse off because it didn't even beat inflation - the return was 5.5% against 5.9% inflation. Interest rates started in 1952 at 4% and are now back to 4% but they have soared during the 70s when inflation was running at 25%. Base rates hit 13% in 1973 and 16% in 1980 with mortgage rates running at 12.5% in 1976 and hitting 17% in 1979. In 1992 Britain left the Exchange Rate Mechanism and by 1993 interest rates were at 5.5% As the advisers always say shares can go up and down in value - so let's look at how a few household names have fared over the last 50 years.


HOW SHARE PRICES HAVE CHANGED
Highest closing price 1952 1977 2002*
Barclays Bank 44/9 350p 2,434
Boots 53/6 148 727.2383
Guinness 62/7 150 461
ICI 47/4 1/2 402 461p
Marks & Spencer 86/3 108 423
Unilever 49/7 1/2 500 659
* before 24/5/2002      

THE FINANCIAL WORLD
Now take a look at the landmarks in financial history over the last 50 years.


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