Equities do not always make money

Fund manager's comment

Most investors know they need to invest for the long term, say, 10 to 20 years, to be sure of genera...

Most investors know they need to invest for the long term, say, 10 to 20 years, to be sure of generating reasonable returns. And, despite the market volatility of the past few years, most people buy equities on the understanding they are the best route to inflation beating returns. Nothing is wrong with either of these ideas. The final assumption investors can make, that, regardless of the price they pay, equities will make money for them, may, however, cause a problem. Although equities certainly tend to move upwards over time, their inherent volatility means they offer plenty of oppor...