Good time to begin to get out of cash and invest, say strategists

INVESTORS should begin to consider moving out of the safety of cash, either into fixed income or equity investments, say strategists.

This is because once the US Federal Reserve begins to reduce interest rates – it has indicated three cuts this year – the speed at which cash rates fall is likely to be rapid.

Around US$9 trillion is invested in money market funds globally. For the US, where data on fund flows is more easily available, assets in money market funds declined by about US$60.9 billion in the week ended Mar 20, to US$6.05 trillion.