Justin Urquhart Stewart: Why cash is not king

clock • 3 min read

Far from being 'king', argues Justin Urquhart Stewart, cash is an expensive luxury for long-term investors - indeed, most would be better off holding as little as possible and buying equities instead

The Yahoo! Finance headline just after Christmas was unequivocal: "The sexiest investment for 2019: Cash." This far into the year, that article could hardly have been more incorrect. Year to date, global equities have gained more than 16%, while cash has made hardly anything. Not so sexy now, Yahoo! Nevertheless, the piece was expressing a widely held view. When times are tough and markets have been falling, as they were in the final quarter of 2018, many investors run to cash. Cash feels rational. Cash feels prudent. Cash is king, right? You can sit and wait out the storm in cash until ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Multi-Asset

MPS Watchlist: Helping advisers navigate the sector

MPS Watchlist: Helping advisers navigate the sector

Professional Adviser analyses what Consumer Duty means for MPS

Professional Adviser
clock 16 February 2024 • 1 min read
Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Partner Insight: Combining strategic and dynamic asset allocation to deliver better outcomes for your clients

Tara Jameson, Co-Manager of the Schroder Global Multi-Asset Portfolios
clock 08 November 2023 • 8 min read
Partner Insight: How interest rate moves drive bond returns

Partner Insight: How interest rate moves drive bond returns

Markets might have got their interest rate outlook wrong, but the case for holding global bonds as part of a multi-asset portfolio remains as strong as ever.