Cuts to corporate tax and NI drive opportunities for equities

ON ASSET ALLOCATION

PIERS HILLIER, CIO of LV= Asset Management on Asset Allocation

If the 1990s epitomised the cult of equity, so the 2000s should go down as the cult of debt. But what cult classic will we be celebrating at the end of the 2010s? The answer may lie in what happened in 1987 – the introduction of the Financial Services Act, the ‘Big Bang’ changes in the operation of the stock market, the start of Personal Equity Plans and the continuation of the privatisation programme. The unintended consequence was a 186% return from the FTSE 100 over the decade of the 1990s equating to a return over 11% per annum. 1997 heralded the first Labour government for alm...