cash

When policymakers cut interest rates, cash rates tend to follow. Investors may miss out and face reinvesting at lower rates than they could get now on bonds.

Benefits 'increasingly evident'

Market opportunities versus returns

Increased interest on cash

Fidelity International

Correlated with Fed's fund rates

BofA Global Fund Manager survey

Today’s investors face a challenging prospect of an oncoming recession and elevated market volatility, which may lead them to question their risk appetite and asset allocation. Against this backdrop, Fidelity’s fixed income team highlight the reasons why now is a good time to be allocating to cash in your investment portfolio.

This year’s flood of capital into cash investments after a decade of negative returns has been well documented. Our fixed income investment team examine the UK as a case study and discuss why they believe forward interest rates suggest cash could reign as king for a while.

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