FTSE 100 Index (1984-2013) – price performance

To quickly recap a previous post, the FTSE 100 Index was launched in 1984 with a value of 1000 and closed 2013 at 6749. This is an increase of 575% over the 30 years, giving an annual growth of 6.57%.

Trendline

The following chart shows the price performance of the FTSE 100 Index 1984-2013. A simple linear trendline has been added.

FTSE 100 Index [1984-2013] with trendlineThe trendline calculates a value of 6695 for the end of 2013, which is just 54 points away from the actual value (less than 1% difference). As can be seen in the chart, the FTSE 100 Index is pretty much bang on its long-term (since 1984) trend.

Inflation-adjusted

The following chart plots the FTSE 100 Index against the real index (inflation-adjusted) for 1984-2013.

FTSE 100 inflation-adjusted [1984-2013]Inflation-adjusted the FTSE 100 Index closed 2013 at 2304 – an increase of 130.4% on the starting value 30 years ago, an average annual growth rate of 2.8%.

Comparison with S&P 500 and gold

The following chart plots the FTSE 100 Index against the S&P 500 Index and gold. The three series have been re-based to start at 100 for ease of comparison.

FTSE 100 v S&P 500 v GOLD [1984-2013]The above chart is not that useful as the S&P 500 Index and gold are both priced in dollars, so the following chart plots them in sterling terms against the FTSE 100 Index.

FTSE 100 v S&P 500(£) v GOLD(£) [1984-2013]

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