An overview of the UK equity market compared to a broad USA and European equity market comparison. Regardless of the FTSE 100 approaching its all time highs (The highest closing value of 8,012.53 was reached on 16 February 2023) it performance is still no where near comparable to what the USA equity market has achieved across the S&P 500 and Nasdaq 100. Both the CAC and DAX have beaten the FTSE 100 & FTSE 250 for the past year, as we probably approach a period of consolidating inflation and a move to easing central bank rates in Europe, UK and the USA that could be on the cards in Q3. Q4 of 2024.
The above chart is from beginning of January 2000. Here it is easily to be seen (unless you are colour blind), that the Nasdaq 100 has outperformed it's broad USA benchmark, S&P 500. But here the UK equity market has shone a light, but it's the more domestic orientated FTSE 250 that has done well beating the FTSE 100, FTSE Aim 100 and European markets as illustrated.
Yet again it is hard to argue that the USA equity market dominates performance for the most liquid and regulated markets in the world. Litigation and oversight of the SEC and other state or Federal USA regulators playing their part, in making the USA equity market open to all investors regardless of wealth, but that is not to say there are not issues with the transparency of the functioning or mechanisms within those USA markets, including attributed high equity valuations for the constituents of the Nasdaq and S&P.
What the author wants to establish is what has the portfolio of your own manager done or your own self managed portfolio. Investment management should be seen as a long term saving plan, but how easy would it of been to match the USA markets since 2000 for example if someone stuck to a portfolio including a mutual related fund that had outperformed or had an ability to pick those funds or had the ability (there are so many limitations in predicting anything let alone what a price of a public traded security will do over 5, 10 or 20 years).