In most developed markets, equities have not been the best performing asset class over the longer term. This is because most of these economies lack the two basis ingredients that Indian markets offer; a combination of high GDP growth and falling interest rates. Take the case of the UK. According to a Barclays report, an investment in property returned 132% during the period 2000-2014. In contrast, equities only returned 83% during the same period, and that too after considering dividend re-investment which is an impractical assumption in most cases. Even in the US, the sharp correction in 2007-2008, made the rally post 2009 look frenetic. The NASDAQ re-tested its highs of 2000 only much later in 2017 before breaking above the level in 2018. Japan’s Nikkei index is still 50% below the peak that it touched in the year 1989. So equities are not the same story everywhere. In short, equities will outperform, but the effect will be restricted to a handful of high growth economies like India which offer the combination of high GDP growth and reasonable interest rates.