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Why cash trumps shares if you want top returns

Discussion in 'Market News' started by Lily, Jun 18, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Analysis by Radio 4’s Paul Lewis defies the view that savings accounts are a poor relation of shares
    Many people with shares-based investments will have been feeling glum this week after Brexit jitters wiped tens of billions of pounds off the value of leading UK companies. But at least they can be happy in the knowledge that, over time, the stock market always does better than cash held in a savings account … doesn’t it?

    This conventional wisdom was challenged this week after one of the UK’s leading financial commentators published research showing that money in best-buy savings accounts has beaten the stock market over most periods since 1995. What will surprise many people is that, when it came to putting your money away for longer than 10 years, cash was often the runaway winner.

    Related: Where to put your cash while savings rates are rock-bottom

    For a cautious person investing for periods of up to 20 years, active cash beat a FTSE 100 tracker more often than not

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