YOUR PORTFOLIO Cash
Growth of £ 10k invested in indices over 30yrs
MSCI World (£ 120,159.12 )
Bank of England Base Rate (£ 24,912.10 )
UK Consumer Price Index (£ 19,619.65 )
£ 140,000 |
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£ 120,000 |
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£ 100,000 |
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£ 80,000 |
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£ 60,000 |
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£ 40,000 |
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£ 20,000 |
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0 |
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Nov92
Nov95
Nov98
Nov01
Nov04
Nov07
Nov10
Nov13
Nov16
Nov19
Source : FE Analytics
after the Lehman Brothers crisis , but that was the time to buy . The difficulty of predicting the bottom of the market is a key argument against holding cash . Haynes says : “ Following the Warren Buffett mantra – I am cautiously optimistic that we are beginning to see fear-based mispricing of risk assets . “ Volatility will persist , but this will provide opportunities for investors with a long-term perspective who can take heed of [ Buffett ’ s ] advice to ‘ be greedy when others are fearful ’.” Cash has a place – for optionality , liquidity , diversification and portfolio protection . However , it also leaves investors vulnerable to inflation and problems of market timing . The key is balance : investors can get many of the advantages of cash without selling their whole portfolio . But the fact it is now being discussed as a serious option means the best time to hold it has long gone .
/ 30 / trustnet . com