Cash is the best investment in 2022 for 33% of Singaporeans
This is because cash is seen as a safe investment amidst the uncertainty in the market.
A third of Singaporeans said cash will be the best-performing investment this year, making it the top choice ahead of stocks, property, and cryptocurrency, according to the comparison platform, Finder.com’s, Retail Investor Sentiment Report.
Following cash are stocks and property with 17% each, cryptocurrency with 15%, bonds with 7%, non-fungible tokens with 6%, and commodities with 3%.
Both sexes said cash is also their top pick for the best investment, specifically, 33% of Singaporean men and 34% of women said cash is the top-performing investment.
Of those who chose cash as their top investment, 42% belong to the age group of 55 to 64 years old.
Finder’s Investment Editor Kylie Purcell said Singaporeans are likely seeing security in cash but noted that people must consider the inflation-adjusted return.
“In October inflation rose considerably, with Singapore recording its biggest increase to core inflation in three years,” Purcell said.
“$100 dollars today may only be worth $80 down the track so consumers should be thinking about how they can inflation-proof their portfolios while maintaining liquidity should they need the cash,” he added.
As the Monetary Authority of Singapore (MAS) tightens its monetary policy, Purcell said it could be good news for cash savers.
“Whilst interest rates have been historically low, the MAS recently tightened its monetary policy and is expected to do so again at the April meeting. When central banks look to raise interest rates, it’s typically good news for cash savers, and bad news for other investments like stocks,” he explained.
Finder’s report polled 1,136 Singaporean adults and 39,573 adults worldwide in December 2021, which also showed that Singaporeans are the second most likely to support cash out of 26 countries, with the US ranking higher at 34%.