Invest
No one wins with cash
There’s no reward for keeping your money as cash in the present economic climate, an investment director has reminded would-be investors.
No one wins with cash
There’s no reward for keeping your money as cash in the present economic climate, an investment director has reminded would-be investors.

Wealthi investment director Stephanie Davies has observed that interest rates the world over have fallen to near zero per cent, with most economists not expecting them to rise anytime soon.
“Rates usually rise when economic activity is strong,” she stated.
“The COVID-19 pandemic has delayed any recovery in growth, which means rates are likely to stay low, benefiting borrowers and punishing savers.”
“Staying in cash has almost no reward, whereas investing in assets that give you cash flow will be absolutely crucial,” she continued.

According to the investment director, a lack of economic activity “will likely continue to have a significant impact on the overall economy, as many Australians are starting to feel the effects of COVID-19 on their disposable income and investment portfolios”.
But there are still options available to grow wealth, Ms Davies highlighted.
She pointed out that low interest rates, numerous government incentives and cheaper property prices are driving the accessibility of “worthwhile investments”.
Anyone with the ability to leverage cash into property at this time would be making a “smart decision”, she said.
From her perspective, it’s a more sure-fire investment strategy than purchasing shares.
While able to provide long-term growth, “the short-term volatility makes it a completely different investment than, say, real estate, which may rise or fall by a few per cent each year”.
At the same time, she did concede that “the recent share market selloff has been the steepest in history but the recovery has also been the fastest”.
Acknowledging that everyone does have a different strategy, Ms Davies said regardless of the assets individuals do choose to invest in, a good money mindset is extremely valuable.
“You must ask yourself: Why are interest rates at zero per cent? How long will they stay here? And what does that mean for my wealth into the future?”
About the author

About the author


Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more

Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more

Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more

Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more

Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more

Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more

Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more

Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more

Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more

Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more

Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more

Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more

Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more

Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more

Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more

Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more