Market Views: If cash yields 5%, why invest in other assets?

After a painful 2022, asset owners across Asia have broadly adopted a risk-averse mentality. Higher policy rates make the prospect of simply holding cash or bank deposits quite attractive, although for investors involved in carry, there is a higher price to pay as well. It is easy to secure 5% yield on cash deposits in the US and the UK and between 3% to 4% in Europe and markets such as Hong Kong. Investing in mostly risk-free government bonds makes no major difference. Howeve…