Grice: Go to cash to exploit falls in overvalued equities

Economist Joe Roseman asks SG strategist Dylan Grice where value lies in the markets

Joe Roseman (JR): You are on record stating cash is one of the most underappreciated assets. Explain. Dylan Grice (DG): I think it is. Cash is an unusual asset with interesting properties. It is never going to get you rich because it always has very low and sometimes negative real returns. But equities often go from periods of chronic overvaluation to periods of chronic undervaluation and when they are overvalued, as I think they are now, they offer a very low real expected return too. You can be sure equities will be very volatile over the next five or ten years because that is the...