Cash should not be crowned king by investors with long time horizons as historically equities outperform it in the long-term. It is now widely accepted that while the typical balanced-investment portfolio has an allocation to equities of between 50 per cent and 65 per cent, the actual allocation of risk – as measured by volatility of annual returns – is much greater. The proportion of risk to equities in such portfolios is more likely to be between 90 per cent and 95 per cent. This is because returns on equities [...]