In SA, for the first time in decades, we might be heading to a world in which cash and money market funds produce negative returns relative to inflation for a meaningful period. We all know the only free lunch in financial markets is diversification. Parking investments in cash and money-market funds over the past few years, if not free, certainly felt like a cheap lunch as these assets produced steady inflation-beating returns while local equity markets produced anaemic returns.
For the past five years, investors have moved to the “safety” of cash and money-market funds at a relatively low opportunity cost. However, this cost might become much higher, for several reasons...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.