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According to a Bloomberg article, investors can get a lot more from safe, liquid securities than from the S&P 500 Index adjusted for volatility. This is all due to a statement from JPMorgan Asset Management. “Cash isn’t only a safe place to invest, it now offers a better risk-adjusted return than equities.” The firm had a multi-asset strategy team, with $260 billion under management. This upgraded its recommendation on U.S. cash to overweight for 2019. John Bilton, head of global multi-asset strategy at JPMorgan Asset Management stated that “Our cash and duration overweights really distill down to overweights in U.S. cash and Treasuries, where ex-ante Sharpe ratios are now well ahead of those for U.S. stocks for the first time in a decade.” Sharpe ratio is a measure of the performance of an asset relative to its volatility.


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