High interest rates: Are money market investments a good option?

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Current high interest rates make these investments rather attractive.

In the current investment landscape, filled with uncertainty and volatile markets, the debate over the merits of money market investments vs equities has taken the spotlight. This is mainly because of the desire of investors to seek safety for their accumulated capital, given the levels of uncertainty. In the short term, the money market has a place to play; however, for longer-term investors, this becomes unfavourable.

The challenge of preserving the value of your wealth in the face of ever-rising inflation has become a pressing concern for investors. Inflation erodes your wealth in a silent manner, and investors who have medium- to long-term investment timeframes need to consider alternatives to money market investments.

Source: Sars, 31 August 2023 ADVERTISEMENT CONTINUE READING BELOW What are the alternatives for long-term investors?

 

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