MLC advises caution with cash
Monday, November 17th, 2008
In volatile markets, investors are often tempted to move their investments out of the sharemarket and into ’safe havens’ like cash.
Doing so can however have two undesired effects:
- Investors crystallise their losses. If an investor sells when the value of their investments is down, they will make a loss on their investment.
- There is also often a strong rebound in equity markets after a period of poor market performance, and an investor who has left the market would miss out on this.
