Chapter 5

World equities – increased risk and return

This chapter is about the main return-generating portion of your rational portfolio, equities. In the chapter I hope to convince you that the only equity exposure you need is one that represents the broadest and cheapest exposure possible; an exposure to a world equity index.

Only buy world equity index trackers

In order to move the portfolio towards the promise of higher returns you need to increase your risk/return profile by buying publicly listed equities. I am not suggesting you buy equities because I have some insight that equities are set to have an outstanding performance relative to other assets. It is because I consider equities to be the highest expected return asset class ...

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