At the turn of the century, Britain ruled the world's finances.
The pound was the global reserve currency. The City of London was the undisputed centre of international finance. An investor putting £100 into British equities in 1900 was backing the most powerful economy on Earth.
The next 30 years would test that confidence to its limit.
The Boer War strained imperial resources. The Edwardian era brought labour unrest and political upheaval. Then came 1914 — and a war that killed a generation, shattered the European financial order, and left Britain with debts it would spend decades repaying.
The 1920s brought a partial recovery. But the 1929 crash and the early stages of the Great Depression ensured this period ended at its lowest ebb. British investors who held through it all saw their £100 become £390 — just £208 in inflation-adjusted terms.
This is the worst 30-year stretch in British market history. A 4.6% annualized return through wars, crashes, and the decline of an empire. And even this — the absolute worst — still doubled investors' real purchasing power. UK equities, like their American counterparts, have never delivered a negative 30-year real return.