Equity as an asset class??

Dear all,
All we are seeing is a Bull Market for last three year.From year 2003 it was justified that equity was undoubtebly preffered class of investment reason being interest rate cycles were at its lowest then came the time when forigen money came in that again pushed the mkt up.From here what next? Interest rate cycles again started to firm up GOI 10 year(bond) yield at 8.12% current levels,that means cost of funds are going up. And if we look at commodities cycles they are also in a big bull phase.That means cost of raw material is also going up.If we look at Oil for what ever reason its at 75$/barrel that means our energy prices are also going up.
Now lets take Global scenario all Central banker are in hurry to raise Interest rate does that mean there is so much demand for money in the system I guess no its the Inflation which is demanding a rate hike.
So going forward can anyone help with reasoning why equity to be a preffered asset class.