Blue chips make sense
Published in the Adelaide Advertiser, November 2008
CASH is king again but it should not be seen as a long-term investment vehicle, Wealth Within chief analyst Dale Gillham says.
"Currently the inflation rate is around 5 per cent, and with cash deposits earning between 6 and 7 per cent investors are really only treading water by placing assets in cash," he said.
"If we add in the fact that investors will pay tax on the interest they earn on their cash you can see why I believe there is very little validity for considering cash as an investment.
"It makes more sense to buy and hold solid blue-chip shares."
