Cash may provide better returns than other assets in 2016: KKR

New York

FOR the first time in five years, holding cash could provide better returns than other assets as risks grow for global stocks, according to KKR & Co, the private equity firm that correctly predicted the global stock rebound in the last quarter.

KKR's Global Macro & Asset Allocation team recommends that its clients hold 7 per cent of their assets in cash, up from one per cent in September, according to its 2016 outlook report posted on its website. It also lowered holdings of global equities to 51 per cent from 55 per cent, marking the first underweight rating since 2011.