Cash and Stocks Appeal in 2023 Though With Different Risks and Returns
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Cash savings offer high interest rates in 2023, but real returns are still low after inflation and rates may fall in 2024.
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Stocks seem cheap currently - mid/small caps due to rate hikes and big FTSE 100 firms offer dividends over 7%.
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US tech stocks like Apple and Amazon had an amazing 2022 run and could continue rising amid the technology revolution.
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Stocks are much riskier than cash, but have potential for higher returns of 7-10% yearly on average long-term.
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Best strategy is to keep some money in cash savings but invest bulk of long-term retirement savings into stocks.