The chart of the week compares the performance of three different asset classes over the past 50 years and broken down by decade. There has been much discussion lately about the appeal of cash and cash alternatives. However, despite a significant change in interest rates that saw cash rates climb above 5%, long-term cash investments have underperformed compared to other asset classes. Over the long term, equities have returned over 10%, bonds just under 7%, while cash has returned less than 5%. It’s important to note that the period under review, from 1970 onwards, was one of high-interest rates, which makes it relevant to the current environment. As always, it’s wise to invest according to your risk level and time horizon.