So much cash, so little confidence

Investors are still hurting from losses caused by the global financial crisis and are understandably cautious about their next move. But the urge to recoup some – or hopefully most – of those losses over time is pressing and investors can hardly be expected to sit back and wait for the global economic recession to unfold.

The big question on everyone’s minds is: where do I put my money in 2009?

Holding on to cash lock-stock-and-barrel – while tempting – is certainly not the way to go. Cash has normally been used to moderate the performance of a portfolio during rough patches or to provide liquidity. Cash has never really been a good proxy for investing and holding on to it in bulk will certainly lead to missed opportunities.