Cash Isn't Always King

Interest rates from the likes of bank accounts and term deposits are the highest they’ve been in well over a decade. In contrast, investment markets have been bumpy with recent returns modest at best. It’s understandable why some are starting to ask “Why bother with markets? Why don’t I just keep all my money in the bank?” We do think it’s reasonable to hold a bit more cash than normal at the moment. But investors should remember that, over the long-term, stock markets have performed well in high and low interest rate environments and, over the long-term, sitting in the “safety” of cash has been detrimental to your wealth.