By Richard Dunbar, Senior Investment Strategist, Investment Solutions, Aberdeen Asset Management
The end of 2014 saw equity markets wobble as investors pored over poor economic data from Europe and Japan, and as terms such as “disinflation” and “secular stagnation” started to appear more regularly in the investment lexicon. However, history has shown that strong GDP growth does not necessarily translate into healthy investment returns. Equally, as investors it shows us that we need not fear some of the gloomy scenarios noted above.
The link between GDP growth and investment returns (or lack thereof) has been examined extensively in the world of academia. Jay Ritter in his 2004 paper, and Dimson et al in their 2002 paper, both analysed returns...
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