Cash takes the crown: 22% say it will be the best investment in 2022

It has beaten stocks and cryptocurrency.

Cash is still king, for Hongkongers at least.

According to Finder’s Retail Investor Sentiment Report, cash has been selected to be the best-performing investment in 2022 by 22% of Hong Kong adults, beating stocks, cryptocurrency, and property.

However, the number of Hongkongers backing cash is still lower than the global average of 24%.

Behind cash is the share market, with 21% saying they will back shares and exchange-traded funds.

Meanwhile, only 15% say they would invest in cryptocurrency, 14% on property, and 7% on bonds and commodities.

About 14% also believe non-fungible tokens will be the top investment in 2022, which is higher than the global average of 5.9%.

Finder’s investment editor, Kylie Purcell, said it is not surprising to see Hong Kongers think cash will perform best this year given the economic climate remains uncertain.

Purcell, however, warned that cash savers need to consider the “inflation-adjusted return.”

“$100 today may only be worth $80 down the track so consumers should be thinking about how they can inflation-proof their portfolios but maintain liquidity should they need the cash,” Purcell explained.

“On the other hand, with the Fed expected to raise the interest rate, some analysts think Hong Kong could follow suit as they have done in the past. When interest rates go up, it’s typically good news for cash savers, and bad news for other investments like stocks,” the expert added.