This week we look back at the May 2010 issue of Money Management, written just prior to the last UK general election.
The cover story looked at comeback of new technology funds, which had taken a hit after the technology, media and telecoms (TMT) funds bubble burst in 2000. Between 1995 and 2000 the sector experienced major investment inflows, causing stocks to be overvalued and a speculative bubble to form. When the bubble did burst, the FTSE 100 fell by 46 per cent to 3,613 in three days.
Fallout from the bubble caused many investors to shy away from TMT funds, but the feature asserts that there is value to be found in the sector due to innovation in technologies and advancement of the internet between 2000 and 2010. The feature says, “New research by Barclays shows that the average child in the UK spends £385 a year on technology and suggests that adults will be spending much more. This proves that there has been a significant change in lifestyle, which is unlikely to be reversed, so there will always be a demand for technologies.”
The issue also featured a survey on child trust funds, stating that about 5m child trust funds had been opened since their launch in 2005. During campaigning, the Conservatives and Liberal Democrats, who went on to form a coalition, had pledged to scrap child trust funds if elected. The government contributions were duly cut from £250 to £50 before being scrapped entirely in September 2012.
In other news…
A coalition government was formed between the Conservatives and Liberal Democrats following the UK general election. The Conservatives won 307 seats, Labour won 258, and the Liberal Democrats won 57. The SNP gained only 6 seats, and UKIP had none.
In world news, the UK formed an agreement with Russia and China to impose a fourth set of sanctions on Iran’s nuclear program in an attempt to stop the country from enriching uranium. The US recently reached a deal to lessen these sanctions, despite much criticism.
The number one single in the UK at the beginning of May 2010 was “Good Times” by UK grime collective Roll Deep. Iron Man 2 was top of the UK box office for the first half of the month.
More Back in the day…
