Are shares the best long-term buy?

The latest annual study from Barclays Capital suggests that shares generally outperform bonds and cash in the long run, says Martin Spring in the On Target newsletter. But there's still no guarantee of success - equities have been known to generate negative returns over periods as long as 20 years. And generating the best returns relies on one vital investment strategy...

Although US equities gave real returns averaging only 3.4% last year, over longer periods they continue to outperform other asset classes, Barclays Capital says in its latest annual study of shares and government bonds.

By contrast, UK equities delivered real returns of 18.9% last year. Their cumulative real return of 51% since the end of 2002 completely erased the losses caused by the tech stock crash.

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