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.
Access Forsyth Barr research
Explore our research reports, news and analysis by logging into your account.
If you are not yet a client, create an account to read reports and view market announcements and company news.