Equity markets will probably remain below their previous peaks until at least 2019, according to research published this morning by London Business School, spelling prolonged gloom for asset managers, which rely on high asset values for fee income.

Economists Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School said: "There is a 50% chance it will take a decade for the FTSE 100 index to recover its previous high. In the US, the Dow may stay below its high until 2022."