Cash has been one of the best performing defensive assets over the past three years. With interest rates expected to stay higher for longer, cautious investors would be right to question whether other asset classes are worth the risk. But are the tides changing?
On paper cash still appears to be king; however, these healthy returns are attributed to accelerated inflation and rising interest rates, an environment we may be moving away from. Inflation has been trending downwards for months and rate cuts are predicted to begin before the end of 2024.
Read Perpetual Private’s paper Will cash remain king? to understand how adopting a diversified approach to investing could help manage your portfolio through different market conditions.