Holding cash may mean risky business

Investors with too much cash could deplete their portfolios in times of negative real yields

The renewed decline in yields and cash rates across global markets in recent weeks leaves investors in a conundrum.

The safest assets, like cash and government bonds, now guarantee real (or inflation adjusted) wealth destruction if held to maturity. Non-dollar bonds in developed markets even have a negative nominal yield, on average.

Please or to continue reading the full article.

Get unlimited access to all stories at $0.99/month

  • Latest headlines and exclusive stories
  • In-depth analyses and award-winning multimedia content
  • Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*

*Terms and conditions apply.

A version of this article appeared in the print edition of The Straits Times on October 21, 2019, with the headline 'Holding cash may mean risky business'. Subscribe