Are equities no longer guaranteed to out perform lower risk investments?
Equities were never guaranteed to outperform any other kind of investment over any period of time. It’s simply a belief of the last couple of decades that you can’t lose with equities over the long term. We now know that you can, and that means that equities now have to attract a much higher risk premium than they have in the past. We have to recognise the risk and pay less for equities with that in mind. That’s just my opinion. What do you think? Join in the debate at the Open University.
