Taking alternative approaches

How have retail and institutional investors managed their cash over the last five years? Very differently, as their specific aims and needs mean that they employ very different approaches to asset allocation. Retail investors responded to the collapse of the equity markets in 2000 by cutting their losses and reallocating a significant proportion of those assets into cash products, such as money market funds. More recently, they have reallocated their assets back into equities as they have rediscovered their appetite for risk and have been discouraged by the low levels of yield currently o...