Cash is a ‘compelling alternative’ to stocks, says BofA

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Bank of America strategists see limited upside for the S&P 500 Index through year end, while cash offers returns of around 5 per cent.

Sticking with the mantra “cash is king” may be a winning strategy for investors this year as turbulence in the financial sector obscures the Federal Reserve’s path and worsens the economic outlook.P 500 index”, strategists at Bank of America led by Savita Subramanian said in a note to clients.

Markets have weathered a volatile month fuelled by fears of a potential crisis in the financial system following the recent failure of some US regional lenders and the near-collapse of banking giant Credit Suisse Group before its government-brokered takeover by rival UBS Group.

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