You are here: Home - Investing - Experienced Investor - News -

10 years on from the financial crisis in 10 charts

0
Written by:
08/08/2017
It is now 10 years since the global financial crisis. Here are 10 charts showing how the investment and personal finance landscape has changed in that time.

Ten years on from the global financial crisis, Fidelity International examines ten charts showing how the world has changed since this defining moment – and the lessons learned:

Best performing asset classes:

CumulativeGrowth

Tom Stevenson, investment director for personal investing at Fidelity International, said: “The cumulative returns of high yield bonds and emerging markets over the past decade have pipped US equities. Bonds have benefited from the collapse in interest rates in the wake of the financial crisis but without first suffering the savage bear market that equities experienced in 2008 and the start of 2009.”

UK interest rates:

InterestRatesFid

Maike Currie, investment director for personal investing at Fidelity International, said: “Record low interest rates have been good news for borrowers – those with mortgages and credit card debit have enjoyed a prolonged period of very low rates. In fact, there is an entire generation of homeowners who have never experienced an interest rate rise since buying their first homes. But for those who have been prudent with their money – savers and investors – the environment of perennially low interest rates has hurt.”

Cash vs. stock markets:

CashvStocks

UK sectors performance:

UKsectorPerformance

Stevenson said: “Spotting the winners and losers ahead of time is no simple matter and putting your eggs in a variety of baskets is the best way to ensure that you gain exposure to the sectors and asset classes that do end up delivering good performance.

“This chart also shows how stock market returns are to a large degree determined by the price an investor pays at the outset. Buying at a low valuation stacks the odds in your favour, while paying over the odds makes it very difficult to generate an acceptable return over time.”

Stocks & shares ISA allowance:

ISAallowance

Performance of global stock markets:

GlobalStockMarkets

Stevenson said:  “It comes as little surprise that the US has led the recovery since the financial crisis. The authorities moved swiftly to slash interest rates, inject cash into the economy via quantitative easing and, perhaps most importantly, re-capitalise the banking system. The US is also the spiritual home of the best performing sector over the period, technology.

“However, while it has paid to stick with the US throughout the post-crisis upswing, it is now one of the most expensive markets in the world and there are other regions which offer better value for investors, namely Asia Pacific, Europe and Japan.”

Inflation – UK CPI:

CPIinflation

Wage growth:

WageGrowth

Earnings have flatlined for almost a decade. Currie attributes this to underemployment: people working part-time who want a full-time job or hidden unemployment: people who are not actively looking for work but who would re-join the workforce if the job market were stronger.  

Pension allowances:

PensionAllowances

The value of the pound (GBP to USD)

ValueofPound

Stevenson said: “Sterling has been on the back foot since the EU referendum, but it has traded in a range between $1.20 and $1.30 for the past nine months or so, shrugging off a deterioration in economic conditions and intensifying political concerns. That suggests to me that the bottom may have been reached versus the dollar. Against the euro things may well get worse before they improve, however. The economic outlook in Europe is better and there is much less political uncertainty.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Comments are closed.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Index trackers underperform over the long-term, research finds

Most tracker funds underperform when compared with the actively managed funds in their investment sector, according to research from advisory...

Close