13/10/2026
With interest rates elevated and uncertainty continuing across global markets, holding more cash can feel like the cautious choice. In fact, investors globally have accumulated record amounts in money market funds, with assets reaching approximately $13.5 trillion in early 2026.
But there is an important distinction between holding cash for a purpose and allowing cash to become your long-term investment strategy.
In South Africa, interest rates remain elevated, while transport and energy costs continue to influence inflation. Globally, higher bond yields and renewed inflation concerns are also changing the investment landscape.
Cash can provide liquidity, stability and flexibility, but over the long term, excessive cash holdings can mean missing opportunities for capital growth and diversification.
At Activ8, we believe every part of a portfolio should have a purpose, including the cash allocation.
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