Cash as a long-term asset class

As interest rates have increased, cash savings have understandably become more attractive. But the annual return is still less than half of that achieved by global equities over the long-term.

In our Balanced and Cautious portfolios, we continue to hold cash as it is currently an attractive asset class compared to other asset classes which are perceived to be lower risk. But our default strategy is to invest 100% into global equities, as this produces the best long-term returns.

However, we fully accept that short-term downturns can produce real worry, which is why our Balanced and Cautious portfolios have other less-volatile assets including cash.

So by all means, find the highest possible savings rates for your rainy day money but with regard to investing, keep to the plan of investing in the great companies of the World.

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