Investment: Why cash is trash

Recent events have tempted many investors to sell out of the stock market. But being out can have its pitfalls too

Stockmarket Picture: iStock
Stockmarket Picture: iStock

Near-zero interest rates, currency turmoil; increasing fragmentation in the eurozone; a marked slowdown in China and in important emerging markets; instability in Russia, Ukraine, and the Middle East. Investors have plenty to worry about. But some don’t just worry, they panic.

The past six years have been good for most investors. But for many multinational companies the biggest growth drivers of their share prices have been their earnings growth from emerging markets. ...