Portfolio Cash Investment Strategies on the increase

by Insignis Cash Solutions in News

Recent research by Julius Baer shows that a more defensive investment position is recommended. This is a major step to ensure not only a diversified portfolio but to mitigate potential risks in the current investment environment. The suggested cash percentage in a portfolio has increased to 12% in a high-risk portfolio, 7% for an income-based portfolio and 8% for a balanced portfolio. We see this as an indication that there is an expectation of higher interest rates as inflationary pressure builds. Due to Brexit and weak economic numbers, the outlook for UK equities is negative. When outlook is negative in both bonds and equities, this drives a high cash percentage to position for capital preservation. Paul Richards, Chairman, Insignis Cash Solutions comments: “Uncertainty in the market leads to a more conservative and liquid portfolio stance. While the US markets are looking strong, and historically the UK have always followed suit, Brexit adds a level of uncertainty that is bucking this trend. Therefore, higher cash allocation strategies are going to become more common in the short term.”

Leave a Reply

Press Contacts

TWITTER

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

After a catastrophic year for savings rates, the current way that HMRC calculates and deducts tax for eligible save… t.co/bMDEnbLuSM

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

As the negative interest rate subject matter continues to pick up momentum, we discuss what business owners may nee… t.co/6cHHepcoJR

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

We are delighted to have won the @SavingsChampion 'Best Cash Platform 2021' Award, recognising Insignis as best in… t.co/X9msqtD7fw

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

The Insignis Team would like to wish you a wonderful holiday season and a healthy and prosperous 2021. We will rem… t.co/UsV8KQ8Nvq

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

The Bank of England has stated that we may see the UK Savings Ratio peak to as much as 17% by the end of the year.… t.co/SCr4YbQHAh

As Featured In: