An investor who bought the FTSE 100 at its peak in 2007 would now be just about back where he or she started, assuming no charges and ignoring dividend payments. Compare that with the very basic, quarterly, blue-chip momentum strategy I've charted over the same period which, following a storming start to 2014, has delivered a capital return of slightly more than 100 per cent over the same period.
Admittedly, these momentum returns are theoretical. Indeed, share price performance is measured on a mid price-to-mid basis and ignores all charges, which is particularly fanciful given the high-turnover nature of the strategy. Nevertheless, the performance (see graph) illustrates what a powerful factor momentum can be on investment returns.