Fund managers say that these high return shares are largely bought by professionals and they know what they are doing. But trusts are getting better at renegotiating terms. Highly geared shares do suffer more than most in falling markets but they have more capacity for recovery. It is wrong to conclude that barbells and other income producing structures are wrong - there are some attractive investments out there. How the cost of living has soared 1900 Barclays price index 100.
Prices soar after the first world war.
The great depression sees prices tumbling. Index drops to 165. Prices on most goods frozen. Barclays Index 217. Prices climb again after the war.