Cash becoming a more attractive investment option

Financial planning firm Bridges says that the increasing attractiveness of cash returns – with cash rates rising – combined with the persistence of an inverted yield curve may mean investors might favour more secure investments, such as bonds and bank deposits, over shares. Investment research house van Eyk forecasts lower returns for Australian shares of 9.2 per cent, including franking credits, over the next five years, down from about 11 per cent now.