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“ While returns have been miserly , cash has maintained two attractive attributes that are hard to replicate : the level of security and its liquidity ”
Gavin Haynes Investment consultant at Fairview
Nothing is safe There is also a diversification argument . Bonds and equities have proved to be highly correlated since the start of 2022 , as interest rates and inflation have dominated market movements . This creates a difficult situation where equities have sold off and bonds have provided no protection . Alternatives such as infrastructure and commercial property have also proved vulnerable to the interest rate cycle .
Savings rates may be linked to interest rates , but at least with cash , investors will get back what they put in . Gavin Haynes , investment consultant at Fairview , says : “ While returns have been miserly , cash has maintained two attractive attributes that are hard to replicate : the level of security and its liquidity .
“ With global bonds seeing their first bear market for 70 years , this has provided a rude awakening , showing that while fixed interest has
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