Over a decade of low interest rates have, until recently, rendered cash an overlooked, but inevitable asset class. In 2023, that is changing due to the haven protection that cash offers and as a response to rising interest rates.
Advisers say that cash is coming up in conversations with clients more than it did two years ago. This resurgent interest isn't surprising. The past few years have brought rolling crises which show little sign of abating. This year, investors are grappling with a potentially recessionary outlook in economies where central banks are raising rates to fight inflation.
The case for cash as a haven has become stronger than ever and clients want their money in safer assets in the short term, or until economic confidence improves enough for them to invest cash in stocks or bonds again.
Advisers say there will continue to be an investment case for cash over the next 12 months. The Bank of England's monetary tightening policy continues to drive up variable interest rates to multi-year highs, enabling investors to achieve risk-free and reasonable returns.
Read more about why advisers say there will continue to be a case for cash and where advisers need to look to capitalise on the cash opportunity in this exclusive research report from Flagstone.
