Cash may be king at present, but without taking some risks you'll never get a return"

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cashisking

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Is this article a bit out of date,and a bit like an article wrote by an estate agent at the height of the property bubble.



www .independent.ie/business/personal-finance/cash-may-be-king-at-present-but-without-taking-some-risks-youll-never-get-a-return-2851077.html[/url]

"In contrast, returns on investment funds are delivering double digit returns like World Gold Funds with returns as high as 31pc." .... looks like the next bubble.

"Headiness such as "Germany's confidence at highest in two decades" and "US enjoys strong end to 2010 as jobless figure falls" underscore the recovery."
.......I thought we are possible looking at a double dip scenario
 
Cash is good as part of a balanced portfolio. I am happy with 10% or so.

James Montier and Jeremy Grantham have some interesting views on the value of cash in a portfolio and how it performed empirically in previous inflationary times. Can be downloaded off their GMO website. Their view is that it holds up well during inflationary times compared to bonds and equities and that it provides dry powder for buying into further market falls.

Whether cash is worthwhile when negative interest rates are so great (and set to stay so with rates at zero for years) in inflationary UK and USA is another question. Certainly in countries with deflation then cash is worth holding.

Having the majority of one's long term wealth in cash is not a good idea IMO. Its all about getting the right balance between asset classes.
 
I recently had a visit from a financial advisor from one of the main banks. He gave me some brochures on various funds that showed some serious returns in the last 2 years, 12 -30 percent, which to be honest are very tempting, but a big part of me likes the security of cash.
I also felt these are the guys that gave advice to buy property, shares etc in the boom, and now that the people that took their advice are probably broke, they are looking for their next victims.

I remained conservative during the boom, and have a small amount of shares, the rest is in cash, getting 3.5% from post office and other insitutions aroud 3%.

Should i start changing my outlook.
 
cashisking said:
I recently had a visit from a financial advisor from one of the main banks. He gave me some brochures on various funds that showed some serious returns in the last 2 years, 12 -30 percent, which to be honest are very tempting, but a big part of me likes the security of cash.
I also felt these are the guys that gave advice to buy property, shares etc in the boom, and now that the people that took their advice are probably broke, they are looking for their next victims.

I remained conservative during the boom, and have a small amount of shares, the rest is in cash, getting 3.5% from post office and other insitutions aroud 3%.

Should i start changing my outlook.
Click to expand...


you had a visit from a SALESMAN from one of the banks

the banks often distort figures in order to reflect well upon various fund performers , i wouldnt touch a bank investment fund with a barge pole , i had quite a bit of money in an irish life fund from 2007 - 2010 and it never made a schilling , i realise this was during the credit crunch but i kept well away from property or equities , i focused entirely on commoditys and india and china , this was during a period of a commoditys boom before autumn 2008 and still it made nothing , four out of five funds never make any money as they are swallowed up in fees , besides , the fund manager has nothing to loose even your investment goes belly up , he gets paid regardless , theese funds are nothing but vechiles for banks to make handy money , your better off buying a handfull of boring but reliable blue chip stocks
 
As Farmreette said you had a vist from a 'Saleperson' not an advisor. These guys are frankly dangerous to your money and will only obviously put you into their banks products when they know better is available elsewhere. They will only get paid by selling you something....remember that. Go to a fee based adviser if you want honest, impartial and genuine 'advice'
 
See my thread in the Deposits forum about an article that appeared in the Sunday Business Post re: cash savings. It contained several untrue or at least misleading statements.

A cynical person might say it was an attempt by vested interests to steer people away from cash and towards other asset classes.
 
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