Even in uncertain times like these, cash is still a bad idea for investors, UBS says

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Even in uncertain times like these, cash is still a bad idea for investors, UBS says
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A retreat into cash is not the answer, despite global economic uncertainty, UBS said Wednesday.

"We believe that investors can keep their investment strategies on track for the long term even in the current uncertain times without retreating to cash," said UBS global chief investment strategist Mark Haefele.

Economic uncertainty reigns as the trade war between the U.S. and China has placed increasing strain on the global economy, prompting policymakers to respond with interest rate cuts and stimulus measures to bolster growth. Investors are searching for safe havens amid the uncertain landscape; however, Haefele said a retreat into cash is not the solution.

"Dividend investing is a defensive investment style that generates regular cash flows for investors and tends to outperform when markets are volatile," said Haefele.

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