Friday 23rd June 2017 - Market Report

Well, FTSE100 is down again by 15 points, and the portfolio is down by £1,300 - not too bad.

And now the moment you've been waiting for, what's better 3% interest or a 50:50 chance of 30% increase or a 10% loss each year.

Not surprisingly the 50:50 choice is far better, this works out at an annual return of 8.17% - which is why you should invest in the stock market.

How do you work this out?

It's like this:

Over a long period of time you woyld get an equal number of -10% years and +30% years. 

So in two years your return is 0.9 x 1.3 = 1.17 i.e 17% return.

Now 17% return over two years is an annulised return of 8.17%

So go for it, put your savings in a nce balance portfolio, sit back and enjoy a nice regular increase of 8%.

Good luck folks