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

Multi-asset funds: A whole new ball game?

Multi-asset funds: A whole new ball game?

'The growing appetite for multi-asset funds underlines the attractions of being an all-rounder'

Sheldon MacDonald
clock 14 April 2025 • 4 min read
Marlborough broadens multi-asset fund range and lowers charges

Marlborough broadens multi-asset fund range and lowers charges

Group predicts multi-asset fund popularity return

Jenna Brown
clock 31 March 2025 • 2 min read
SJP gives £4.6bn multi-asset management mandate to Royal London

SJP gives £4.6bn multi-asset management mandate to Royal London

Follows Schroders picking up SRE fund from Impax

Jen Frost
clock 26 February 2025 • 2 min read