SINGAPORE (Dec 4): Currently, one of the greatest sources of inequality is the huge disparity between the returns from holding stocks and holding cash. Interest rates are extremely low so that they hardly compensate for inflation while stock markets are booming. Finance theory would argue that people should invest a significant fraction of their wealth in a diversified portfolio of stocks, as investing in the stock market will be compensated by a risk premium.

Have a premium account? Sign in to continue reading.

Unlimited access to all stories from $99.9/year*

The latest reporting and analysis from business and investments to news and views on social issues.

Bonus:

  • Simultaneous logins across all devices
  • Instant access to past digital issues
  • Unlimited access to The Edge Malaysia
  • *For annual subscription plan only. T&Cs apply

Subscribe