Should you own equities at all? For some of you, the answer is: no.
Certainly, most people don’t own them. The ONS says that only 12 per cent of households own shares directly, and only 5 per cent own or unit investment trusts – although many more have pensions.
There are many reasons for this. One is simply that people can’t afford them: only one household in six has net financial wealth (excluding pensions) of more than £100,000. Another is a lack of knowledge. And another is loss aversion: those who would get much more pain from (say) a 10 per cent loss than pleasure from a 10 per cent gain won't see equities as a good deal.