Cash is not king when it comes to long term goals
Source: Morningstar Investment Management calculation, Morningstar Direct data to 28 February 2019. Returns are month-end data points in GBP and normalised at 1 on 30 June 2016. Past performance is not a guide to future returns.
Given the recent string of events, I wanted to take this opportunity to comment on Brexit. Beyond the daily (or hourly) swings in prices, we can see UK company shares are up around 20.6% since the initial vote (in aggregate including dividends), UK corporate bonds are up 8.5% and cash has gone sideways. This can be seen in the chart above
So, looking backwards, it would have been a mistake to put your money under the pillow. Looking forward, it’s likely to be a mistake too. Here is an interesting thought - UK shares have beaten cash in every 20-year period in its history.
We normally recommend your savings are spread across many different assets and regions to diversify your returns and reduce risk —with the aim of meeting your own specific plans for the future.
