Latest Research Assets relative risk for long-term investors Christian Gollier, Toulouse School of Economics (LERNA) WP TS&W n. 14/07 To request a copy of this paper click here We show that, for all developed countries for which data are available, the relative riskiness of equity compared to bonds and bills goes down when the investment horizon increases. In particular, VAR setups show that this effect is very strong. This fact implies that investors with a longer investment horizon should invest relatively more in equity. These results are opposite to those presented by Lukassen and Pršopper (2007). They shed some critical light on the proposed Solvency II reform, which would force life insurers to inefficiently rebalance their portfolio towards safer assets. Nothing contained in this website is intended as investment advice. Access to and use of this Pioneer Investments web site provided on the following Terms and Conditions. "Pioneer Investments" is a trading name of The Pioneer Global Asset Management S.p.A group of companies. © 2006 Pioneer Global Asset Management S.p.A Research General Issues in Savings and Investments Macro Trends in Savings and Wealth Investor Micro-Behaviour Long term Horizons in Investments