Save
How to outperform the market with cash strategies
With the cash rate falling to a new historic low in June, investors are finding creative ways to boost their savings pool without sacrificing liquidity.
How to outperform the market with cash strategies
With the cash rate falling to a new historic low in June, investors are finding creative ways to boost their savings pool without sacrificing liquidity.
Portfolio manager at Prime Value Cash Plus Fund, Matthew Lemke believes it’s possible to outperform the market with cash investments, but warns there are risks in deterring from traditional cash deposits.
“It’s possible to keep risk down yet still outperform the rate available on term deposits and other cash investments by targeting selective securities issued by major banks and financial institutions, and having a strong focus on capital preservation.”
Where will cash rates land?
Being more actively aware of different offers on cash products in the market is important in the mid term, as the official cash rate is likely to drop again.
A change in the Reserve Bank of Australia’s thinking means another rate cut is certainly possible in the foreseeable future.
Chief economist at AMP Shane Oliver has recently suggested that rates could fall by as low as 0.5 of a percentage point next year.
“With unemployment at 5.2 per cent and inflation well below the RBA’s target 2–3% band, the Australian economy had significant spare capacity, warranting the rate cut, with more likely,” Mr Lemke said.
“The significance for investors is Australian interest rates will stay lower for far longer than anyone expected. Investors will be under even more pressure to find ways to replace lost income from cash holdings.”
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Expenses
How couples can solve financial disputes without separating
The pandemic has put a new set of pressures on relationships, with finances oftentimes a trigger – so how can couples put such arguments to rest? ...Read more
Expenses
Making way for mobile: Tapping becomes too easy
Cards could be going out of favour as Australians move towards more mobile payment methods. The average person now taps their phone 21 times a month for everyday expenses. ...Read more
Expenses
Winter clothes and white goods: JobSeeker rise provides basic standard of living
A social services group has warned against a $300 a fortnight reduction in the coronavirus supplement which could see Australians struggle to afford food and accommodation. ...Read more
Expenses
Gas prices still sky-high despite international affordability
Australians are still paying too much for gas and LNG products, according to the consumer watchdog. ...Read more
Expenses
Self-care spending through the roof
Australians are better prioritising their own wellbeing during the pandemic despite cutting back on expenses across other areas, if the latest spending data is anything to go by. ...Read more
Expenses
9 in 10 families struggle to keep kids in childcare
As the government’s childcare subsidy ends and payments revert to pre-COVID status, nine in 10 Australians have said that it will be a financial burden to send their children to childcare, new rese...Read more
Expenses
Falling gas prices fail to reach consumers
Australians living on the east coast are paying significantly above export parity prices, new research has found. ...Read more
Expenses
‘A marathon not a sprint’ means Aussies are holding back
More cautious spending habits are already translating to long-term conservative attitudes when it comes to money, a new study has found. ...Read more
Expenses
How couples can solve financial disputes without separating
The pandemic has put a new set of pressures on relationships, with finances oftentimes a trigger – so how can couples put such arguments to rest? ...Read more
Expenses
Making way for mobile: Tapping becomes too easy
Cards could be going out of favour as Australians move towards more mobile payment methods. The average person now taps their phone 21 times a month for everyday expenses. ...Read more
Expenses
Winter clothes and white goods: JobSeeker rise provides basic standard of living
A social services group has warned against a $300 a fortnight reduction in the coronavirus supplement which could see Australians struggle to afford food and accommodation. ...Read more
Expenses
Gas prices still sky-high despite international affordability
Australians are still paying too much for gas and LNG products, according to the consumer watchdog. ...Read more
Expenses
Self-care spending through the roof
Australians are better prioritising their own wellbeing during the pandemic despite cutting back on expenses across other areas, if the latest spending data is anything to go by. ...Read more
Expenses
9 in 10 families struggle to keep kids in childcare
As the government’s childcare subsidy ends and payments revert to pre-COVID status, nine in 10 Australians have said that it will be a financial burden to send their children to childcare, new rese...Read more
Expenses
Falling gas prices fail to reach consumers
Australians living on the east coast are paying significantly above export parity prices, new research has found. ...Read more
Expenses
‘A marathon not a sprint’ means Aussies are holding back
More cautious spending habits are already translating to long-term conservative attitudes when it comes to money, a new study has found. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
