Investing in a well diversified financial portfolio is a sensible way to manage your finances through sharemarket volatility, however global economic uncertainty is swaying some investors interests towards cash and fixed income.
ipac technical expert Colin Lewis appeared in the Financial Review this week to discuss this switch in strategy and agrees that DIY fund investors who have been tied up in cash in the past did so out of apathy – although he believes this mindset to be swiftly changing.
“People are making a conscious decision nowadays to invest in cash,” says Lewis, “It’s about a flock to security as market volatility continues. It’s something we’re continuing to see.”
ipac’s co-founder and Executive Director Paul Clitheroe believes that cash should be just one component of a well diversified portfolio.
“The real issue is not to panic around prices falling and rising, says Clitheroe. “If you want a secure income stream you’re more likely to get it through safe shares such as Woolworths, in banks and decent property than a piece of fixed interest.”
Click below to hear more from Paul on investing in cash when everything else feels too risky.