Interest rate cuts and rising investor confidence in equity markets will mean cash will no longer be viewed as king of the asset classes, according to Russell Investments chief investment officer Symon Parish.
He said while investors seek the security of cash safe havens, there are now other emerging opportunities in the investment landscape for 2009.
"Equity valuations look attractive relative to the significantly lower returns from cash as a result of the series of recent interest rate cuts," Parish said.
"Cash will no longer be king as risk aversion dissipates and investor confidence in equity markets picks up over 2009."
Opportunities have emerged in Japan, with valuations at their lowest level. The country's banking sector in particular has weathered the financial crisis better than banks in Western countries, according to Parish.
The market recovery will also be led by the US, he said.
"The US will lead other international markets in recovery as they have experienced the financial turmoil and slowdown in productivity earlier and deeper than other countries," Parish said.
This year there will be plentiful opportunities for the most skilful active managers to add value against market benchmarks, he said.
