Investors cannot sit on cash, given 'tyranny of low interest rates': UBS

Singapore

WITH the "tyranny of low interest rates", investors should take a modest risk-on approach, despite prevailing uncertainty and volatility to be expected in the second half of this year on the back of the surprise "Brexit" vote last week, a top strategist from UBS Wealth Management said on Thursday.

"Sitting on our hands, and on cash, is not a viable solution," said Tan Min Lan, head of Asia Pacific, chief investment officer, UBS Wealth Management, at a conference held for the bank's clients. "Negative interest rate is a wealth tax. It's meant to penalise savers, and to reward borrowers."