Investors in cash and fixed interest for the long term
Bankers worried that all the deposits that have flowed into their at-call and term accounts since the financial crisis are going to start flowing back to equity markets can relax; the trend to cash, term deposits and fixed income investments continued in 2010 and looks likely to be maintained this year.Research company Datamonitor yesterday released the results of an investor survey showing that more than a third of respondents increased their holdings in cash and bond investments last year. Datamonitor senior analyst Andrew Haslip said: "We have had an acceleration of the trend seen in 2009, when uncertain conditions and a global recession caused investors to take shelter in cash products."In 2009 34.5 per cent of respondents said they had increased their holdings in cash and bonds and this increased slightly to 35.4 per cent in 2010.Haslip said the move to cash, term deposits and bonds was looking more like a long-term investment strategy and not just a stop-gap. More than 30 per cent of respondents said they invested in government or corporate bonds for the first time last year. Haslip said it was hard to see the attraction of cash and fixed interest assets being any less this year. Equity markets did not perform last year and the global economy is still plagued by uncertainty.