With interest rates surpassing 5%, a level unseen in over 15 years, investors may be tempted to switch investments to cash. However, history suggests staying invested usually leads to better outcomes. Following interest rate peaks, returns from bonds tend to outperform the return on cash over the two years that follow. And over the long-term, mixed-asset portfolios outperform cash.
In this video we explain why it’s usually not a good idea to try and time the market and switch to cash.
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