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WEALTH INSIGHTS

Equities - the 'new safe option' for portfolios?

The biggest long-term risk facing investors who want to preserve or increase their wealth may well be - not taking any risks.

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STREET RETURNS: As US company earnings increased, so did equity prices on the US stock market. Between 1871 and 2015, the S&P 500 price index rose from 4.44 to 2,071.18 points, equivalent to a nominal increase of about 4.33 per cent per annum on average.

'NOT taking risks at all is the biggest risk." This is our motto during these times of financial repression. Some investors think perhaps equities are even more "secure" than bonds - it depends on the perspective. In this article, we shall explore the behavioural pattern of equities in the very