Cash alternative safest investment

coyrls

EdGasket wrote: »

No you and bigadaj miss my point. Why not just keep cash rather than buy gilts with a negative yield to maturity? Cash at least wouldn't lose anything and would be just as safe.

These are inflation linked gilts. I don't know what assumption is made about inflation when calculating the yield to maturity but if inflation exceeds the assumption, then there could be a positive return. So they provide some protection against high inflation (which cash doesn't).

AnnMollys

To be fair, I already see plenty of great suggestions, but one thing is obvious in all that there is slight risk but seriously, do you think anything in life can be risk free or without having to put effort? I really don’t think so, therefore, it’s vital to be slightly brave.

EdGasket

You know when markets are near the top ....when cautious people start getting in!

coyrls

EdGasket wrote: »

You know when markets are near the top ....when cautious people start getting in!

What, the top for all time, never any recovery in the future? Better get out then.

2010

EdGasket wrote: »

You know when markets are near the top ....when cautious people start getting in!

Have to agree.

US markets are at all time highs, with the UK almost there.
Brexit vote market bounce (although EXPERTS said they would crash).
US election uncertainty, China slowdown.

A BoE governor who changes his mind on rates every other week.
Carney forcast a Brexit vote wold mean higher interest rates then cut them.

Massive debt everywhere, and the only solution is to make borrowing even cheaper for people to, yes you`ve guessed it, get into even more debt.

I think at the moment I`m a seller rather than a buyer.

EdGasket

That's all true 2010 but with the Gov. prepared to cut rates and print money, the next big 'crash' could be cash investments rather than shares if high inflation arrives.

bigadaj

EdGasket wrote: »

That's all true 2010 but with the Gov. prepared to cut rates and print money, the next big 'crash' could be cash investments rather than shares if high inflation arrives.

Cash has already crashed, it's just that many people haven't realised, which is a plus for the bankers and the politicians.

Compare the value of sterling against major currencies, equities, government and corporate bonds, etc etc

2010

bigadaj wrote: »

Cash has already crashed, it's just that many people haven't realised, which is a plus for the bankers and the politicians.

It`s cash that`s driving the markets.
The only way it`s "crashed" is because politicians and banks have made it too cheap to borrow.
Cash will always be king because of it`s liquidity.

AnotherJoe

2010 wrote: »

It`s cash that`s driving the markets.
The only way it`s "crashed" is because politicians and banks have made it too cheap to borrow.
Cash will always be king because of it`s liquidity.

Try buying a car and see if "cash is king"

bigadaj

2010 wrote: »

It`s cash that`s driving the markets.
The only way it`s "crashed" is because politicians and banks have made it too cheap to borrow.
Cash will always be king because of it`s liquidity.

Well that's a rather roundabout way of thinking if things.

Governments are printing money, so devaluing it, it's actual value is decreasing in the hands of individuals.

This devalued money is finding its way into other asset classes, inflating them.

It's certainly wise to maintain a base level of cash to maintain liquidity, most comoany bankruptcies are due to cash flow issues rather than inherent unprofitability.