5 Big Investment Trends in 2023

2. Cash

When inflation and rising interest rates caused stocks to lose their allure in 2022, many analysts and investment gurus were predicting that cash would be the kind in the months and years to come. Earlier this year, two-thirds of the respondents in an MLIV Pulse survey involving 404 professional and retail investors said that cash in their portfolios would improve their portfolio performance. Cash’s allure is tempting for even the Oracle of Omaha, Warren Buffett, who is famously against cash hoarding and always wants to put his money to work. Latest data shows that Berkshire Hathaway Inc.’s cash pile reached a whopping $157.2 billion in 2023 amid lack of attractive deals, interest rate hikes and an overall uncertain economic environment.

Amid rising risk and lackluster performance of stocks, money managers were recommending their clients to give importance to cash. A Bloomberg report quoted Leo Kelly, chief executive officer at Verdence Capital Advisors, who said:

 “We’re encouraging people that it’s okay to hold cash, that it’s not just a lead weight on your ankle weighing you down. You can get a nice yield and there will be a lot of volatility in the markets and lots of chances to put that cash to work at attractive levels.”