IF I could sum up 2023 for investors in three words, it would be “Cash to investments”. Our bold call at the start of 2023 for investors to put cash to work with “The return of 60/40” has paid off handsomely, with our balanced portfolios recording gains of some 16 per cent.
We titled our market outlook “Shifting currents”, because following the massive 525 basis points (bps) of rate hikes by the Federal Reserve over the past 18 months, there is now a shift in the relative attractiveness of the asset classes of bonds, cash and equities.
This has profound implications on how an investor should construct his or her portfolio – one that optimises risk-adjusted returns.
Despite the negative...
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